Craig, CO – [November 19, 2020] – Blue West Capital has completed the sale of a single tenant net leased Kum & Go property located at 1302 West Victory Way in Craig, CO for $5,088,395.
Zach Wright and Tom Ethington, of Blue West Capital, represented the seller and purchaser in the transaction, respectively. The purchaser was Buchtel Realty Investors Craig LLC, a Colorado-based private real estate family office. The seller was an Iowa-based private investment and development company.
The 3,392 square foot Kum & Go property is positioned at a signalized intersection in the heart of Craig along U.S. 40. The property is surrounded by numerous national retailers such as Walmart Supercenter, Walgreens, McDonald’s, O’Reilly Auto Parts, City Market, and many others. Craig is located approximately forty miles west of Steamboat Springs and it is the largest city in Northwest Colorado. Craig is the county seat of Moffat County.
The property features a long-term absolute triple net lease with zero landlord responsibilities. The lease features 7.5% rental increases every five years. Kum & Go operates 430+ locations and was ranked the 178th largest private company in the U.S. by Forbes. Kum & Go is headquartered in West Des Moines, IA.
“Single tenant net lease (STNL) investor interest has remained high throughout the pandemic. Investors continue to seek properties leased to high credit tenants that operate essential businesses. In fact, we have experienced cap rate compression over the past six months as investors gravitate towards the stability and attractive yields offered by STNL properties,” said Zach Wright, Director of Net Lease Investment Sales.
“Gas stations and convenience stores (c-stores) that qualify as a ‘retail motor fuel outlet’ are eligible for significate bonus depreciation options. Depending on the investor’s needs, you can immediately write off up to 80%+ of the asset’s value after acquisition. Deprecation options were important to the buyer as well as the centrally positioned signalized intersection and long-term credit lease,” added Tom Ethington, Managing Partner.