Aurora, CO - Kroger Gas

Description:

SRS National Net Lease Group is pleased to offer the opportunity to acquire the leased fee interest (land ownership) in an absolute NNN, corporate guaranteed, Kroger Gas (dba King Soopers) investment property located in Aurora, Colorado (Denver MSA). The tenant ground-leased the site to add a fuel center to their grocery store located in the same center. Kroger has operated their King Soopers’-branded grocery store at this center for over twenty years. The addition of this fuel center demonstrates their long-term commitment to the site. The tenant, Dillon Companies LLC, has approximately 20 years remaining with 5 (5-year) options to extend. The lease features 10% rental increases every 5 years throughout the initial term and at the beginning of each option period, steadily growing NOI and hedging against inflation. The lease is absolute NNN with zero landlord responsibilities making it an ideal, management free investment opportunity for a passive investor. Founded in 1883, Kroger ranks as one of the world’s largest retailers with over 1,242 stores in 34 states which generate over 121.1 billion in annual sales.

Kroger Gas is located along South Parker Road, a major retail thoroughfare that serves over 77,000 vehicles per day. In addition, the site also benefits from nearby direct access to East Arapahoe Road (79,600 VPD), providing ease and convenience for customers. The asset is strategically positioned as an out parcel to Arapahoe Crossings, a 528,000 SF power center anchored by King Soopers, Kohl’s, Big Lots, and Burlington, significantly increasing consumer traffic to the center. Furthermore, Arapahoe Crossings is adjacent to Cornerstar (584,950 SF), which is home to many notable tenants including Target, Marshalls, Ross, 24-hour fitness, and more. The asset is in the center of a primary retail corridor with other nearby national/credit tenants including Walmart Supercenter, Home Depot, Bed Bath & Beyond, and more. Strong tenant synergy increases consumer draw to the immediate trade area and promotes crossover tenant exposure to the site. Moreover, the subject property is ideally located between Acadia at Cornerstar Apartments (400 units) and The Grove at Cherry Park (216 units), providing a direct residential consumer base from which to draw. The 5-mile subject trade area is supported by more than 250,000 residents and 173,000 daytime employees. Residents within a 1-mile radius boast an extremely affluent average household income of $180,865.