H&H Auto Parts at Boot Hill
- 5385 Jackson Street, Denver, CO 80216
- Property Type:
- Single Tenant
- Cap Rate:
- 6.70% cap
- Square Feet:
- 7,318 sqft
- Lot Size:
- 1.80 Acres
- Price Per Square Foot:
- Year Built:
- 100% Occupied 7,318-Square-Foot Single-Tenant Industrial Property
- Situated on 1.8 Acres with a Fenced-In Lot
- Zoning Allows for Outdoor Storage
- New Five-Year Triple-Net Sale-Leaseback to be Executed at Close
- Founded in 1959, H&H Auto Parts Currently Operates out of Three Locations in Colorado and Nebraska
- Located in Upper North Central Submarket with Proximity to Downtown, I-70 and I-270
Marcus & Millichap is pleased to present the opportunity to acquire the property located at 5385 Jackson Street in Denver, Colorado, occupied by the current owner H&H Auto Parts. The subject property consists of approximately 7,318 square feet of warehouse space and is situated on 1.8 acres of land. The single-tenant asset features two buildings, a fully fenced-in lot, metal construction, and a clear height of 20’. Zoned as I-B, the property allows for heavy manufacturing and outside storage. With easy access to major thoroughfares, including Interstates 70 and 270, the property sits in close proximity to Downtown Denver.
Upon the sale of the property, H&H Auto Parts plans to sign a five-year lease with the new owner. The triple-net sale-leaseback offers investors 3.0 percent annual rent escalations. Founded in 1959, H&H Auto Parts offers recycled, aftermarket, rebuilt, and original equipment manufacturer (OEM) parts. The company maintains four salvage yards with three office locations across two states.
The property is located within Upper North Central, a midsized submarket containing 9.9 million square feet of industrial space. Going into the fourth quarter of 2022, net absorption was on pace to set a 10-year high. During Q4, the vacancy rate sat at 5.7 percent, which is in line with the overall Denver market. Despite a slowdown, annual market rent growth remained comfortably above its three-year average at 6.8 percent in Q4. With no industrial properties under construction, there will be no supply-side pressures on vacancies or rents for the foreseeable future. Inventory has actually contracted slightly over the past ten years, as demolition activity has outpaced new construction (CoStar).
Denver-Aurora-Lakewood metro is home to three million people among 10 counties. Known as the Mile High City, Denver, which is also a county, serves as the state’s capitol and largest city, with approximately 742,800 residents. Metro Denver houses 10 Fortune 500 companies, including Newmont Goldcorp, Arrow Electronics, and DISH Network. Aerospace, financial services, and health care are some of the industries that have driven economic growth in the new millennium. The passage of Amendment 64 in November 2012, created a new industry in marijuana, largely consisting of young thriving businesses. Metro Denver provides a high quality of life with rural and urban amenities. Rocky Mountain National Park is less than two hours drive from the metro area, and the city houses franchises for all four major sports.