A 1.6k sf, single-tenant retail property occupied by Subway in Denver traded for $810k, or $506/sf. At the time of sale, Subway had 11 years remaining on its franchise-backed lease.
Remodeled in 2010, the property is located at 7327 E. Colfax Ave, at a signalized intersection which averages 45,200 vehicles passing per day. E. Colfax Ave. is highly transitional with strong local, regional and national retail concepts. The site is close to multiple shopping centers including Mayfair Plaza, 29th Avenue Town Center and Quebec Square. It is also walking distance to a number of other stores and restaurants and Johnson & Wales University-Denver Campus.
Brian Wolfman, Patrick McGlinchey and Justin Gregory with SRS National Net Lease Group represented the seller, a private investor from South Dakota. The buyer was sourced by SRS and was a SoCal-based private investor in a 1031 exchange. The closing cap rate was 4.9%.
“The sale of this Subway property marks one of the lowest cap rate transactions for a franchisee restaurant sale in the Denver market,” said Wolfman. “The highly visible and well located property also has long-term residual value with a five-story property zoning allowance should the new ownership want to pursue redevelopment once the lease expires.”