A Minneapolis-based 1031 exchange investor paid $5.733 mil for a single-tenant restaurant property fully occupied by Red Robin in Colorado Springs, CO. Built in 1987 and located at 1410 Jamboree Dr, the property totals 7.2k sf ($796/sf) and is situated on just over an acre of land.
The property has a corporate-guaranteed lease by Red Robin Gourmet Burgers Inc, with approximately nine years remaining and options to extend after that. Red Robin has been at the location since 1987 and recently extended its lease, demonstrating long-term interest in the submarket.
The property is located at a signalized, hard-corner intersection at Jamboree and Academy Boulevard N, which sees more than 57,000 vehicles per day. Additionally, it is one-half mile from I-25 which sees more than 108,000 vehicles per day.
The restaurant is also adjacent to the 1.1 msf 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.
Brad Gibbs, Matthew Mousavi and Patrick Luther with SRS’ National Net Lease Group represented the seller a Midwest-based institutional investor. The property traded at a 6.25% cap rate.