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.