Castle Rock, CO – [October 22, 2021] – Blue West Capital has completed the sale of a single tenant new construction United States Postal Service property located at 220 S Wilcox Street in Castle Rock, CO for $2,850,000. The property sold for the 2nd lowest cap rate ever recorded for a United States Post Office Sale outside of California, according to CoStar, and for 106% of the listed price. Over twenty-five qualified offers were generated during the marketing process.
The brand-new construction 5,382 square foot USPS property serves as a mission-critical “Finance Station” combining retail operations with carrier logistics. The property features a long-term lease to the United States Postal Service, which is an independent agency of the Executive Branch of the United States with an investment grade credit rating of AA+ (S&P). USPS is investing $40 billion over the next ten years in its infrastructure and people.
The property is positioned east of Interstate 25 and just south of downtown Castle Rock. The surrounding area is affluent with average annual household incomes of $142,000 within five miles and strong projected population growth.
Zach Wright and Brandon Gayeski, of Blue West Capital, represented the seller in the transaction. The seller was a Midwest-based real estate development firm. The purchaser was a California-based 1031 exchange investor.
“High quality single tenant properties in Colorado are in short supply. This brand-new construction property offered a long-term lease with extremely strong credit. We received substantial investor interest in this property which resulted in a historic cap rate,” said Zach Wright, Director & Partner. “Our team has sold over a dozen properties in Castle Rock over the past few years. Castle Rock is one of the most desirable markets in Colorado due to its growing and affluent demographics,” added Brandon Gayeski, Associate Director.