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13792 E Mississippi AveAurora, CO 80012
7 Brew
Asset ClassRetail
Deal Size$1.82 M
Cap Rate: 5.5%Year Built: 2024Access Data Room
Brand New Construction | 15 Year Abs NNN Ground Lease
overview of deal

Overview

Price: $1,818,000 | Cap Rate: 5.50%

 

Lease Term: 15 Years

Lease Type: Absolute NNN Ground Lease

Rent Commencment Date: 12/18/2024

Rent Increases: 10% Every 5-Years

Lease Guarantor: ERC Brew, LLC

Building SF: 500

Year Built: 2024

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Investment Highlights

15-YEAR ABSOLUTE NNN GROUND LEASEYEAR ABSOLUTE NNN GROUND LEASE Long term lease with no landlord responsibilities and with 10% Rental Increases Every 5 Years.

GREAT ACCESS FOR MORNING COMMUTERS AT HEAVILY UTILIZED ON-RAMP 7 Brew is constructing a brand-new state-of-the-art drive-thru facility on the ‘Going to Work’ side of Mississippi Avenue and I-225, both are significant thoroughfares for morning commuters.

GROWING NATIONAL TENANT 7 Brew operates in 292 locations across 26 states and is rapidly expanding into new markets, generating an 185% growth rate.

PERSONAL GUARANTY FROM EXPERIENCED OPERATOR The lease is personally guaranteed by the operator of 33 Freddy’s locations throughout Alabama, Colorado, New Mexico, and Texas. ERC Hospitality was founded in 2009 and has developed 23 Freddy’s while acquiring 10 additional locations. The subject property is ERC’s premier 7 Brew location with additional locations in their pipeline.

BLACKSTONE RECENTLY ANNOUNCED A SIGNIFICANT INVESTMENT IN 7BREW Brian Cornyn of Blackstone said, “This investment illustrates Blackstone’s thematic focus on investing in strong franchise businesses alongside highly skilled operators. We are proud to bring Blackstone’s experience and global resources to fuel 7 Brew’s next stage of growth."

HEAVY TRAFFIC CORRIDOR OFF I-225 On the southwest corner of I-225 and Mississippi, the subject property is visible to more than 228,000 of combined VPD. I-225 is a major transit route to Denver International Airport (20-minute drive). Neighbors of the subject property include McDonalds, Maverick, IHOP, AutoZone, Veteran Affairs Medical Center, Planet Fitness, 7-Eleven and more.

NEAR LARGEST MEDICAL CAMPUS IN ROCKY MOUNTAIN REGION The subject property is three miles south of the state-of-the-art UCHealth at University of Colorado Anschutz Medical Anschutz Medical Campus Campus (678 beds), Children’s Hospital Colorado (434 beds), and Rocky Mountain Regional VA Medical Center (300 beds, 1,412 total). Together, the medical campus sees over 2 million adult and pediatric patients per year.

DENSELY POPULATED AND GROWING SURROUNDING AREA Within this radius, 186,013 people earn an average household income of $81,267. The population density of the area is over 6,500 per SqMi. In addition to the existing density, there are 1,947 multi-family units currently under construction or proposed to be built in a 3-mile radius.

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13792 E Mississippi AveAurora, CO 80012
HCA HealthONE Aurora
Town Center at Aurora

Sales Team

Drew IsaacSenior Managing Director Investments(303) 328-2048drew.isaac@marcusmillichap.com
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