November 29, 2018 – SRS Real Estate Partners’ National Net Lease Group has completed the approximately $5.733 million sale of a single-tenant restaurant property fully occupied by Red Robin in Colorado Springs, CO. Built in 1987 and located at 1410 Jamboree Drive, the property totals 7,221 square feet and is situated on just over an acre of land.
SRS’ 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. The buyer was a private, Minneapolis-based 1031 exchange investor. The property traded at a 6.25 percent cap rate and sold for approximately $794 per square foot, one of the highest price per foot comparables for the Red Robin brand nationally.
“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,” said Gibbs.
The property is located at a signalized, hard-corner intersection at Jamboree Drive and Academy Boulevard N, which sees more than 57,000 vehicles per day. Additionally, it is one-half mile from Interstate 25 which sees more than 108,000 vehicles per day. The restaurant is also adjacent to the 1.1 million-square-foot Chapel Hills Mall which is anchored by Macy’s, Dillard’s, Burlington and Dick’s Sporting Goods. There are also other nearby tenants including Whole Foods Market, Best Buy, Ross Dress for Less, PetSmart, and Nordstrom Rack among others that create additional cross-over customer traffic.
SRS’ National Net Lease Group successfully completed more than 270 sales in 2017; to date in 2018, the group has more than 350 transactions sold or under contract across more than 35 states nationwide, with over $1 billion in assets currently listed for sale.