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Phoenix & Southwest  + Southwest  + Retail  | 

COVID Triggers Surge for Single-Tenant Essential Needs Assets

Kum & Go is an up-and-coming convenience store and gas station concept in the net lease space, says a broker familiar with a recent sale in Littleton, CO. A Southern California-based buyer acquired the asset for $7.3 million.

Ian Schroeder and Melissa Ley at CBRE’s Newport Beach office represented the private investor in the triple-net-lease acquisition.

“Generally, these properties achieve a higher return than the better-known bigger chains,” says Schroeder.  “The overarching trend we are seeing is cap rate compression due to strong demand and lack of quality inventory. COVID-19 has triggered a surge in investor interest in corporate-backed single-tenant properties, especially those with ‘essential’ tenants.”

The property, located at 11505 W Belleview Ave., sits on 2 acres in an affluent neighborhood with an average household income of $133,154 within a one-mile radius and is located at a hard-corner location surrounded by new residential developments.

“Colorado continues to be a popular place for net-leased investments due to the affluent suburbs and population growth,” said Ley. “This Southern California-based buyer has been looking to build a small net-lease portfolio for investment and estate planning purposes.”

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About Lisa Brown

Lisa Brown has decades of experience in corporate communications and marketing management with organizations including Coldwell Banker Residential, Grubb & Ellis, Marcus & Millichap, NAIOP, SIOR and ALM. In those positions, she worked in conjunction with chief executive officers and chief marketing officers to create corporate messaging, cohesive branding standards, strategic marketing plans and thought pieces. Brown is a frequent speaker at industry events and an editing adjunct professor for an online course. She has a master’s degree in mass communications from San Jose State University.

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