Purchase Price | $4,100,000 |
---|---|
Annual Rental Income | $276,750 |
Cap Rate | 6.75% |
Lease Term | 11 Years |
City | Denver MSA |
Tractor Supply Net Lease Investment Opportunity
Denver, CO MSA
11-Year Double Net (NN) Lease
This offering presents a unique opportunity to acquire a Tractor Supply property situated in the dynamic Denver Metropolitan Statistical Area. Featuring fee simple ownership and an 11-year double net lease backed by a strong corporate guarantee, this asset provides investors with stable, predictable income from one of the nation’s leading rural lifestyle retailers. Positioned on a highly visible site with excellent traffic exposure and accessibility, this property is an excellent fit for investors seeking secure, hands-off cash flow in one of the West’s fastest-growing markets.
Location and Market Overview
Denver is the vibrant capital of Colorado and the largest metro in the state, with a population exceeding 3 million residents. Known for its diverse economy, including energy, technology, healthcare, aerospace, and tourism, Denver continues to attract new residents and businesses at a rapid pace. This growth fuels strong demand across retail and service sectors, including rural and outdoor lifestyle retail.
The subject property benefits from proximity to major highways including Interstate 25 and State Highway 7, with daily traffic counts exceeding 28,000 vehicles. Its location near residential communities, industrial hubs, and retail centers offers excellent exposure to Tractor Supply’s core customer base of farmers, ranchers, and outdoor enthusiasts.
Demographics
The surrounding trade area supports the tenant’s success with a population exceeding 95,000 residents within a three-mile radius and average household incomes above $88,000. Expanding to five miles, the population surpasses 210,000, providing a broad and growing customer base for Tractor Supply’s products and services.
Property Details
The property is a purpose-built Tractor Supply facility totaling approximately 19,500 square feet, located on a 3.2-acre parcel. The building includes ample parking, outdoor storage and display areas, and an efficient site layout designed to accommodate high customer and delivery traffic. Constructed to Tractor Supply’s prototype standards, the facility supports operational efficiency and a strong brand presence.
Ownership is fee simple, granting investors full rights to both land and improvements, providing long-term control and asset stability.
Lease Structure and Tenant Guarantee
Leased under an 11-year double net (NN) lease to Tractor Supply Company, a publicly traded corporation with investment-grade credit ratings. Under the NN lease structure, the tenant is responsible for property taxes and insurance, while the landlord typically maintains responsibility for roof and structural repairs. This provides investors with a low-management, stable income stream coupled with limited landlord obligations.
Tractor Supply’s strong financial position and nationwide footprint add a significant credit layer to the investment, enhancing its appeal to institutional and private investors.
Surrounding Area and Trade Drivers
Denver’s robust economy and expanding suburban and exurban communities provide an ideal environment for Tractor Supply’s retail concept. The property’s location near residential developments, small farms, and hobby ranches ensures a steady stream of customers. Additionally, Denver’s proximity to outdoor recreation and agricultural areas supports demand for Tractor Supply’s broad product range.
Investment Highlights
Buyer Profile and Financing
This asset appeals to investors seeking low-management, long-term net lease investments with creditworthy corporate tenants. Fee simple ownership combined with a strong tenant covenant offers excellent financing opportunities and lender confidence.
Conclusion
This Tractor Supply property in the Denver, CO MSA represents a premier net lease investment featuring an 11-year NN lease, a solid corporate guarantee, and a prime location in a fast-growing Western market. The asset provides a stable, hands-off income stream with exposure to the expanding rural lifestyle retail sector.
Qualified investors are encouraged to request the full offering memorandum, lease abstract, and financial information.