Evans, CO – [January 5, 2022] – Blue West Capital has completed the sale of a single tenant net leased Kum & Go property located at 3033 8th Avenue in Evans, CO for $6,700,000. The property sold for a 4.71% cap rate which is the lowest cap rate ever recorded for a Kum & Go property nationally. Zach Wright and Brandon Gayeski, of Blue West Capital, represented the seller in the transaction. The seller was a Midwest-based real estate investment and development firm. The purchaser was a California-based 1031 exchange investor.
The 6,217 square foot Kum & Go property is located at the heavily trafficked signalized intersection of U.S. 85 and 31st Street. The Kum & Go is located approximately one and one-half miles south of the University of Northern Colorado (12,000 students) and sixty miles north of Denver. There are approximately 80,000 people living within three miles of the property with substantial projected population growth.
The Kum & Go property features a long-term absolute triple net lease. There are no landlord responsibilities and fixed rental increases every five years. Kum & Go is the 18th largest convenience store operator in the U.S. with over 400 locations.
Many single tenant convenience store properties, such as the Kum & Go in Evans, qualify for 100% Bonus Depreciation. This unique tax incentive allows real estate investors to depreciate a significant percentage of their acquisition price in year one. 100% Bonus Depreciation is scheduled to begin to phase out in 2023.
“With 2022 being the final year of 100% Bonus Depreciation, we anticipate the market for single tenant gas station properties to be extremely active. These property types should be on every real estate investor’s radar,” said Zach Wright, Director & Partner.
“Net leased properties in Colorado are trading at significant premiums compared to the rest of the country. We continue to assist investors sell their Colorado properties for aggressive and record pricing,” adding Brandon Gayeski, Director.