Sale-leaseback featuring 15-year absolute triple net lease including 10% rental increases every five years
Blue West Capital is pleased to exclusively offer for sale a single tenant net leased Freddy’s Frozen Custard & Steakburgers property located in the Denver MSA. This Freddy’s sale leaseback features a 15-year absolute triple net lease that includes 10% rental increases every five years. This is a strong performing Freddy’s location with a low rent-to-sales ratio. The lease is guaranteed by ERC Development, LLC, a 16-unit operator with locations throughout the Denver MSA. Freddy’s has approximately 450 locations and is one of the fastest growing restaurant chains in the US.
The property is strategically positioned in the Promenade at Castle Rock as an outparcel to Lowe’s and across the street from the Outlets at Castle Rock. This is a regional retail destination attracting shoppers from throughout the Denver MSA and Colorado Springs MSA. The Promenade at Castle Rock and the Outlets at Castle Rock drew a combined 9.24 million visitors during 2021, averaging 75,000 per weekend, and is anchored by Sam’s Club, Lowe’s, Whole Foods, King Soopers, Hobby Lobby, and 24 Hour Fitness. The property is positioned at a signalized intersection and the surrounding area is affluent with average annual household incomes of $150,000 within five miles. The surrounding area is projected to grow by 2.25% annually over the next five years.