Colorado Real Estate Journal - December 2018
A Minneapolis-based buyer took a big bite with its single-tenant restaurant property purchase in Colorado Springs. The buyer, a private, 1031 exchange investor, paid $5.73 million for the Red Robin restaurant at 1410 Jamboree Drive. The 7,221-square-foot restaurant, situated on just over an acre of land, traded at a 6.25 percent cap rate and sold for approximately $794 per sf – one of the highest price-per-foot comparables for the Red Robin brand nationally. SRS Real Estate Partners’ National Net Lease Group First Vice President Brad Gibbs and Managing Principals Matthew Mousavi and Patrick Luther represented the seller, a Midwest based institutional investor, in the disposition of the restaurant built in 1987. “This asset has a corporate guaranteed lease by Red Robin Gourmet Burgers Inc. with approximately nine years remaining and options to extend after that,” said Luther. “Red Robin has been at the location since 1987 and recently extended its lease, demonstrating long-term interest in the submarket.” “SRS received multiple offers and ultimately selected the buyer because of its successful acquisition track record, substantial equity commitment and swift purchase timeline,” added Gibbs. The Red Robin is located at a signalized, hard-corner intersection at Jamboree Drive and North Academy Boulevard, which sees more than 57,000 vehicles per day and is a half-mile from Interstate 25. The restaurant also is adjacent to Chapel Hills Mall, anchored by Macy’s, Dillard’s, Burlington and Dick’s Sporting Goods, as well as near retailers such as Whole Foods Market, Best Buyer and Nordstrom Rack. Other News PT Adobe Court LLC-Jerry Biggs purchased a multitenant industrial property in Colorado Springs for $4.01 million. The property at 3302-3368 Adobe Court was built in 1986 and features 59,500 net rentable square feet on nearly 6 ½ acres of land. The property features 20 tenants, a mix of both local and national. It was built in 1986. Jim Knowlton of Pinnacle Real Estate Advisors represented the buyer in the transaction. The sellers were Robert Caldwell and Daniel Cole. A value-add, 35-unit Pueblo apartment property recently traded hands for $2.3 million. Located at 1024-1026 Oxford St. and 28 Amherst Ave., the community was constructed in 1971. An unidentified buyer paid $65,714 per unit for the community, which was well-maintained and offered immediate rental upside in as-is condition, according to Chris Knowlton of Pinnacle Real Estate Advisors LLC, who represented both the buyer and seller in the transaction. The community is located within walking distance to Safeway and King Soopers, and is near the Elmwood Golf Course, Pueblo Zoo and Pueblo Community College. Mazatlán HSB LLC purchased four four-plexes in Colorado Springs for $1.55 million. The property at 1104-1116 Mazatlán Circle comprises 16 units. All of the buildings feature two-bedroom, one-bath open-floor-plan units that consist of 825 sf. Sean Holamon of Nexus Commercial Realty LLC represented the buyer. Robert Gray of Nexus represented the seller, Mev Properties. The buyer was attracted to the property because of the ability to improve operations, noted Holamon. It plans to add value to the property by making some interior renovations and raising rents as market conditions continue to improve. The portfolio is located blocks from South Chelton Road and Fountain Boulevard – a short drive to Interstate 25, downtown Colorado Springs and the airport. Ted Link and David Schroeder of Cascade Commercial Group recently handled the sale of 1.81 acres of land in the Manitou Business Park in Manitou Springs. The parcel at Topeka and Placer avenues sold for $525,000 to Greg Wellens of Adventures Out West. Wellens bought the ground as an investment hold and plans on developing on the site in the next few years, potentially building a restaurant on the first floor and condominiums on the second floor.