Sold

Sold

Freddy’s Frozen Custard & Steakburgers

Castle Rock, CO 80108

Price

$4,023,000

Cap Rate: %

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.

Investment Highlights

  • Long term 15-year lease
  • 10% rental increases every five years
  • Strong performing location with a low rent-to-sales ratio and upward trending sales (contact broker for details)
  • Absolute triple net lease with no landlord responsibilities
  • Freddy’s Frozen Custard & Steakburgers has approximately 450 locations and ranked #8 as the Fastest Growing Chains in the U.S. (according to Technomic 2021)

Location Highlights

  • Located within the Denver MSA in an affluent and rapidly expanding area
  • Strategically positioned in the Promenade at Castle Rock as an outparcel to Lowe’s and across the street from the Outlets at Castle Rock, a regional retail destination attracting shoppers from throughout the Denver MSA and Colorado Springs MSA
  • Promenade at Castle Rock and the Outlets at Castle Rock drew a combined 9.24 million visits during 2021, an average of 75,000 visits per weekend, and is anchored by Sam’s Club, Lowe’s, Whole Foods, King Soopers, Hobby Lobby, and 24 Hour Fitness
  • Additional retailers located within this regional retail destination include Home Depot, Target, Walmart Supercenter, Murdoch’s Ranch & Home Supply, Kohl’s, TJ Maxx, and Ross Dress For Less
  • Positioned at a signalized intersection
  • Affluent surrounding area with average annual household incomes of $150,000 within five miles
  • Projected annual population growth of approximately 2.25% within one mile over the next five years
  • Located just west of I-25

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Contact Information

400 S. Colorado Blvd | Suite 590
Denver, CO 80246

info@BlueWestCapital.com

720-989-1031