DENVER, CO – [November 8, 2019] – Blue West Capital has completed the sale of a single tenant net leased Kneaders Bakery and Café property located at 19190 Mainstreet, Parker, CO for $3,085,000. This sale represents the lowest cap rate for a single tenant Kneaders Bakery and Café nationally since 2017, according to CoStar.
Tom Ethington and Zach Wright represented the seller in the Kneaders transaction; Colorado-based private partnership. The purchaser was a Midwest-based partnership in a 1031 exchange.
The 3,798 square foot Kneaders property opened in 2014 and is on a long-term absolute triple net lease. The lease features 10% rental increases every five years. Kneaders is a privately held company based in Orem, UT with over 60 locations. They are a fast-casual restaurant chain that serves freshly baked breads, sandwiches, homemade pastries, hearty soups, and refreshing salads.
The property is strategically positioned just off of the heavily trafficked signalized intersection of South Parker Road and East Mainstreet (60,000 VPD). The Kneaders is an outparcel to a grocery-anchored center featuring Safeway, Hobby Lobby and Planet Fitness. The surrounding area is affluent with annual household incomes of approximately $125,000 within a five-mile radius.
“We received numerous offers highlighting the immense current investor-demand for single tenant quick-service restaurant properties,” said Zach Wright, Director of Net Lease Investment Sales. “Properties with long-term leases, strong rental increases, and no landlord responsibilities remain highly sought after, particularly by 1031 exchange investors,” added Tom Ethington, Managing Partner.