Springdale, AR – [December 30, 2021] – Blue West Capital has completed the sale of a single tenant net leased Kum & Go property located at 2351 West Sunset Avenue in Springdale, AR for $4,350,000. Zach Wright, of Blue West Capital, represented both the seller and purchaser in the transaction. The seller was a Midwest-based real estate investment and development firm. The purchaser was a Colorado-based investor.
The 4,968 square foot Kum & Go property is located at a signalized intersection along West Sunset Avenue. The surrounding area features many national retailers including Walmart Supercenter, Lowe’s, Sam’s Club, and many others. The property is located approximately eight miles north of Fayetteville and 19 miles south of Bentonville.
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 Springdale, 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.
“Throughout the past few years, savvy net lease investors have aggressively pursued convenience stores/gas stations due to the 100% Bonus Depreciation. 2022 is scheduled to be the last year of 100% Bonus Depreciation as the incentive begins to phase out in 2023. We anticipate the market for these properties to be extremely active in 2022. Properties, such as this Kum & Go, that have strong corporate guarantees, long-term leases, and strategic locations in strong markets, will continue to be at the forefront of investor demand,” said Zach Wright, Director & Partner.