DENVER, CO – [January 31, 2020] – Blue West Capital has completed the sale of a trophy single tenant net leased Safeway property located at 560 Corona Street in Denver, CO for $16,383,490. Zach Wright and Tom Ethington, of Blue West Capital, represented the seller in the transaction.
This infill Safeway is located on East 6th Avenue situated between Corona Street and Downing Street in Denver’s prestigious Country Club neighborhood. The 51,609 square foot building is centrally located approximately one mile south of the Colorado State Capital building and approximately one mile west of Cherry Creek North. The surrounding area is extremely dense with approximately 230,000 people living within a three-mile radius. This affluent neighborhood features annual average household incomes in excess of $156,000 within a quarter mile of the property.
There are over nineteen years remaining on the lease that features no landlord responsibilities and significant rental increases. The Safeway lease is corporately guaranteed by Albertson’s. In January 2015, Alberton’s merged with Safeway. Today, the company is the second-largest supermarket chain in North America with approximately 2,260 locations. The company is ranked 52nd on the Fortune 500 list and is headquartered in Boise, ID.
“Single tenant properties with long-term leases located in the Denver MSA remain highly coveted among private capital 1031 exchange investors. This trophy property is extremely well-positioned within Denver offering the purchaser significant future value,” said Zach Wright, Director of Net Lease Investment Sales.
“Knowing the seller’s goals, we were able to source a Colorado-based multifamily 1031 exchange buyer that would appreciate the long-term value of the real estate. As the Denver real estate market continues to remain strong, we are seeing more and more of these trophy properties sell to local private capital investors,” added Tom Ethington, Managing Partner.
The seller was CF ALBERT PROPCO III, LLC, a private equity real estate investment firm based in the Southeast. The purchaser was MARUDAS RENTALS, LLC, a Colorado-based 1031 exchange investor.
Since July 1, 2019, there have been fifteen single tenant Safeway properties sold nationally. The median sale price of these fifteen transactions was $11,800,000. This transaction is the fourth Safeway in Colorado to trade during this same time span. The other three Colorado Safeway properties to recently sell were located in Aurora, Parker, and Lone Tree.