COLORADO – [October 20 – November 2, 2021] by Jenna Walters, Colorado Real Estate Journal – Blue West Capital arranged three separate retail sales across Colorado totaling approximately $15 million.
Tom Ethington of Blue West Capital represented the seller MPC Corona LP in its sale of Abilene Marketplace, the 19,138-square-foot retail center at 1113 S. Abilene St. in Aurora. According to public records, Abilene Pacific LLC and Guzman Colorado LLC purchased the asset for $6.19 million.
Built in 1980, the center offers excellent visibility and accessibility to Interstate 225, Ethington noted. This attribute, coupled with its diverse mix of regional and national tenants, attracted buyers to the property, he added. At the time of the sale, the property was fully leased by tenants including: Verizon Wireless, Mattress Firm, EyeCare Specialities of Colorado, Canvas Credit Union and Scrubs & Beyond.
“As interest in retail continues to strengthen, investors are eager to acquire stabilized assets within sub-markets that support both current and future growth potential,” Ethington said. “The extensive surrounding economic development occurring in Aurora, as well as the stability of the current tenant base, is what attracted interest from many buyer groups.”
The asset ultimately sold to a California buyer in a 1031 exchange.
Additionally, Brandon Gayeski and Robert Edwards of Blue West Capital exclusively brokered the sale of the 36,484-square-foot retail property at 2499 Highways 6 and 50 in Grand Junction. A Texas-based private real estate company acquired the single-tenant net-leased property for $5.5 million from a California-based family office.
Tractor Supply Co. has operated at the property since 2012 and recently completed a 10-year lease extension. According to the Blue West team, the property’s stable tenancy, coupled with its signalized intersection location, attracted many prospective buyers to the property. The asset received 18 offers and ultimately traded for $205,000 above the asking price.
“The market for single-tenant net-leased properties in Colorado remains extremely competitive,” said Gayeski. “We continue to experience a supply-demand imbalance, resulting in favorable pricing for sellers.”
“Net-leased investment properties with irreplaceable locations such as the Tractor Supply Co. are highly sought after amongst investors,” added Edwards.
Blue West’s Zach Wright also found this to be true, selling the single-tenant net-lease gas station and convenience store at 10 Stone Quarry Road in Battlement Mesa. A Colorado-based 1031 exchange buyer acquired the 3,800 square foot property for $3.48 million from a Midwest-based real estate investment and development firm.
Kum & Go, which has occupied the property since 2006, will continue operations there under a recently renewed long-term triple-net lease. “High quality single-tenant properties in Colorado continue to be in short supply, which has led to favorable market conditions for sellers,” said Wright. “The Battlement Mesa property sold for the full asking price and represented the seventh-lowest cap rate ever for a Kum & Go property, according to CoStar.”