LAKEWOOD, CO – [March 18, 2022] – Blue West Capital has completed the sale of a single tenant net leased O’Reilly Auto Parts property located at 5807 W Colfax Avenue in Lakewood, CO for $2,795,000. The property sold for 99% of the asking price and in only seventeen days.
Brandon Gayeski, of Blue West Capital, represented both the seller and purchaser in the transaction. The Seller was a California-based family office, and the purchaser was a California-based investor.
This infill O’Reilly Auto Parts is located three miles west of Downtown Denver on Colfax Avenue, the longest continuous commercial street in the U.S. The property borders the Sloan’s Lake neighborhood, one of Denver’s most dynamic neighborhoods with many new townhomes/apartment buildings recently built, under construction, or planned. The surrounding area is densely populated with over 175,000 people living within three miles and there are significant barriers to entry. The property is zoned M-G-U which allows for a variety of uses including a mixed-use building up to 90 feet tall creating significant future value.
O’Reilly Auto Parts has operated at this location since 1998 and has approximately four years remaining on their lease. The corporate lease features no landlord responsibilities and rental increases every other year. O’Reilly Auto Parts is a publicly traded company (NYSE: ORLY) with a market capitalization in excess of $46 billion. O’Reilly Auto Parts has an investment grade credit rating (S&P: BBB).
“Infill single tenant properties with high barriers to entry and favorable zoning are rare. We were able to procure an all-cash investor on the first day of marketing and the transaction closed in 17 days. As the surrounding area continues to experience significant growth, the purchaser is well-positioned to capitalize and re-position the property when the lease ends,” stated Brandon Gayeski, Director.