Apr 22, 2022

Blue West Capital Arranges Sale of O’Reilly Auto Parts in the Denver MSA for Record Cap Rate

WESTMINSTER, CO – [April 22, 2022] – Blue West Capital has completed the sale of a new construction net leased O’Reilly Auto Parts property located at 13587 N. Huron Street in Westminster, CO for $3,875,000. The property sold for a 4.33% cap rate which is the lowest cap rate ever recorded nationally for an O’Reilly Auto Parts property, according to CoStar. This is the 3rd O’Reilly Auto Parts in the Denver MSA sold by Blue West Capital within the past month.

Zach Wright and Brandon Gayeski, of Blue West Capital, exclusively represented the seller in the transaction. The seller was a Southwest-based developer. The purchaser was an all-cash Colorado-based 1031 exchange investor. The property received numerous qualified offers, including many above the listing price, and sold in only 25 days.

The brand-new construction O’Reilly Auto Parts is strategically positioned just west of the signalized intersection of Huron Street and 136th Avenue. The surrounding area is affluent with average annual household incomes in excess of $135,000 within one mile. The immediate area has experienced significant recent development including the opening of Amazon’s 855,000 square foot fulfillment center, Simon’s 330,000 square foot Denver Premium Outlets, the 55-acre St. Anthony North Hospital Campus, and Top Golf.

O’Reilly Auto Parts has a long-term lease with fixed rental increases. O’Reilly Auto Parts is a publicly traded company (NYSE: ORLY) with a market capitalization in excess of $49 billion. The company is investment grade rated with a Standard & Poor’s rating of BBB.

“This transaction illustrates the immense investor demand for high quality single tenant properties in the Denver MSA. Currently, there is very little inventory of new construction and long-term leased STNL properties in the Denver MSA. Supply constraints will continue to impact the market throughout this year. This should lead to little-to-no movement in cap rates for the highest quality STNL assets in the Denver MSA, despite the recent rapid rise in interest rates and other headwinds facing the market,” stated Zach Wright, Director & Partner.

“We started working on this deal in 2019 when we helped the developer identify the site and acquire the land. This is the 3rd O’Reilly Auto Parts property in Colorado that we’ve sold within the past 30 days,” added Brandon Gayeski, Director.


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