‘Trophy Triple-Net’ C-Store Sold in Colorado

What price did this 7-Eleven, Shell location command and why?

Silverthorne, Colorado 7-Eleven Shell convenience store gas station

SILVERTHORNE, Colo. -- Sands Investment Group has announced the sale of a 100%-occupied, triple-net (NNN) 7-Eleven convenience store and Shell gas station along with a Dunkin Donuts located in the gateway town of Silverthorne, Colo., near Breckenridge, Colo. The $7.25-million transaction marked a significantly high price per square foot, at $1,500 psf, for this type of asset and in this region.

The price reflects “the quality brand names and unique location desirability factors of the asset,” said Sands Investment Group.

Dan Hoogesteger and Andrew Chana of Sands Investment Group represented the seller, a private investor. The buyer, Silverthorne Investors, LLC, represented itself in the 1031 exchange transaction.

The "trophy" NNN retail asset is situated on 1.23 acres on Highway 9 off of Interstate 70 at the gateway to six world-class ski resort destinations including Breckenridge, Vail and Copper Mountain.

Dunkin Donuts signed a brand new NNN lease this year, making it the first location for the franchise in all of Summit County, CO.

“The high-profile, high traffic location made this asset an extremely lucrative investment. Plus you have strong brand presence with a new Dunkin Donuts and longstanding 7-Eleven which continues to show a strong operating history,” said Hoogesteger. “This was a highly complex transaction as there were really no comps that matched the high-profile location.”

According to Hoogesteger, the intersection gets approximately 31,000 cars per day and the I-70 Interstate location sees approximately 41,000 cars per day.

“We had to really demonstrate the quality of the asset and the unique strength of the location to support the final price. Ultimately, our buyer was a local investor, who was familiar with and understood the destination quality of the area,” Hoogesteger said.

Santa Monica, Calif.-based Sands Investment Group is a commercial real-estate brokerage firm that specializes in the buying and selling of net lease properties for private investors and institutions.

Part of CSP's 2015 Convenience Top 101 retailers