COLORADO SPRINGS, CO – [October 13, 2023] – Blue West Capital has completed the sale of a new construction single tenant Taco Bell located at 3521 Blue Horizon View in Colorado Springs, CO for $2,415,000. Brandon Gayeski, of Blue West Capital, represented the purchaser in the transaction, an all-cash California-based 1031 exchange investor.
The Taco Bell property features a twenty-year triple net lease with no landlord responsibilities. The lease includes rental increases every five years. Taco Bell is a subsidiary of Yum! Brands. Taco Bell operates over 8,200 locations and serves over $2.1 billion customers annually. This location is operated by a Kansas-based franchisee with over 840 restaurants under management.
The brand-new construction property opened on October 4th, 2023. The Taco Bell property is strategically positioned across the street from Pine Creek High School (1,800+ students), at the first signalized intersection east of Powers Blvd along Old Ranch Road. The surrounding area is extremely affluent with average annual household incomes in excess of $203,000 within one mile. The immediate area is rapidly expanding with annual projected population growth within a one-mile radius forecasted to be approximately 5%.
We facilitated the sale of our client’s relinquished property during the first quarter of this year. The single tenant property was 20+ years old, and the tenant had 2.5 years remaining on the lease. Due to the client being located in an area of California which was impacted by severe flooding and mudslides, the IRS granted an extension of the 1031 deadlines for the replacement property. Recognizing the potential benefits of this extended timeline, combined with a deteriorating market, we advised our client to remain patient, expecting more favorable pricing later in the year. As a result, our client successfully acquired this well-located newly constructed Taco Bell, featuring a 20-year lease with zero landlord responsibilities, while achieving a return on investment similar to that of her relinquished property.Brandon Gayeski, Director
About Blue West Capital
Blue West Capital is a net lease real estate investment advisory firm focused on the acquisition and disposition of single-tenant net leased properties, retail shopping centers, and commercial investment properties nationwide. We are a team of commercial real estate experts committed to helping our clients achieve their investment goals through a combination of exceptional client communication, professional collaboration, and individual experience. Blue West Capital is headquartered in Denver, CO.
For additional information, please visit www.bluewestcapital.com.
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