Fort Collins, CO – [January 31, 2022] – Blue West Capital has completed the sale of a single tenant Grease Monkey ground lease located at 2626 S. Timberline Road in Fort Collins, CO for $1,380,000. The property sold for a 4.65% cap rate, the lowest cap rate ever recorded nationally for a Grease Monkey property according to CoStar. The property received numerous qualified offers within the initial 24 hours of marketing and sold for above the asking price.
The Grease Monkey property is strategically positioned as an outparcel to a King Soopers-anchored shopping center. The surrounding area is affluent with average annual household incomes of $109,000. Fort Collins is home to Colorado State University with over 34,000 students.
Grease Monkey has operated at this location since 2005. The long-term ground lease features annual rental increases and zero landlord responsibilities. The ground lease is corporately guaranteed by Grease Monkey International. Grease Monkey is the largest independent franchisor of automotive oil change centers with over 500 locations and serving more than two million customers annually. Grease Monkey is headquartered in Denver, CO.
Robert Edwards and Zach Wright, of Blue West Capital, represented the seller and purchaser respectively. The seller was a Colorado-based real estate development and investment company and the buyer was a 1031 exchange investor based in Denver.
“Single tenant properties located in Colorado with low price points are in high demand and extremely rare. We received numerous offers and we’re able to procure the buyer on the first day of marketing,” stated Robert Edwards, Managing Partner.
“1031 investors are paying premiums for well-located single tenant properties with corporate guarantees and strong rental increases. This property features rare 3% annual increases,” added Zach Wright, Director & Partner.