The recent sale of a Red Robin Gourmet Burgers, Inc. in Colorado Springs brought in one of the highest prices per foot compared with similar properties for the brand nationally.
SRS Real Estate Partners’ National Net Lease Group announced the approximately $5.733 million sale of the single-tenant restaurant property at 1410 Jamboree Drive, in a news release issued Monday.
Built in 1987, the building — occupied by the chain known for its bottomless fries — sold for about $794 per square foot and traded at a 6.25 percent cap rate.
The property is 7,221 sqaure feet and sits on about 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, who is a Midwest-based institutional investor.
“This asset has a corporate-guaranteed lease by Red Robin Gourmet Burgers, Inc. with approximately nine years remaining and options to extend after that,” Luther said in the release. “Red Robin has been at the location since 1987 and recently extended its lease, demonstrating long-term interest in the submarket.”
The buyer is a private Minneapolis-based 1031 exchange investor, according to the release.
“SRS received multiple offers and ultimately selected the buyer because of its successful acquisition track record, substantial equity commitment and swift purchase timeline,” Gibbs said in the release.
The building sits on the corner of Jamboree Drive and North Academy Boulevard, with more than 57,000 vehicles passing through the intersection each day.
“Additionally, it is one-half mile from Interstate 25 which sees more than 108,000
vehicles per day,” the release said.
The property is next to Chapel Hills Mall, which has Macy’s, Dillard’s, Burlington and Dick’s Sporting Goods as anchor stores.
Other nearby tenants “that create additional cross-over customer traffic” include Whole Foods Market, Best Buy, Ross Dress for Less, PetSmart and Nordstrom Rack, according to the release.
Based in Newport Beach, Calif., SRS’ National Net Lease Group has more than 350 transactions sold or under contract in more than 35 states.