Lucky’s Market Grocery Asset in Fort Collins Sells for $7.3M

A single-tenant retail asset that is fully leased on a long-term basis to Lucky’s Market in downtown Fort Collins, has sold to an undisclosed investor for $7.3 million. The 26,602-square-foot freestanding property was originally built in 1966 but has undergone multiple upgrades since, including a significant multi-million-dollar transformation in 2018. The property

Cushman & Wakefield’s Jon Hendrickson, Aaron Johnson, Aki Palmer, and Cole VanMeveren along with Peter Pavlakis with Legend Retail Group represented the seller, McWhinney, in the transaction. During its ownership, McWhinney completed a $3 million renovation adding bike parking and landscaping elements, in addition to incorporating load dock screening to transform the site into a vibrant neighborhood grocer within walking distance to several nearby key destinations and amenities.

“Lucky’s presented a unique scenario for NNN investors, grocery-focused investors, and long-term residual value-minded investors to all check the box.  The combination of Kroger’s creditworthiness (BBB) and 15 years of remaining lease term, led to a successful marketing campaign garnering nationwide investor interest and multiple offers,” said Jon Hendrickson, executive director.

Located at 425 South College Ave and situated on ±1.74-acres, the property is located at the northwest corner of College Ave and Mulberry St, one of the city’s premier intersections. Mulberry St is considered a primary access point to Interstate 25 and serves as the exit for those traveling to downtown Fort Collins or nearby Colorado State University. Historic Old Town Square is also within blocks of the property. The property’s downtown Fort Collins location falls under the Downtown District Zoning Code.

“Lucky’s Market is located at one of Fort Collins’s most prominent intersections. The proximity to Old Town, CSU’s campus, and access to I-25 makes this a corner with limitless future potential,” added Aki Palmer, executive director.

According to its website, Lucky’s Market was founded in 2003 by Bo and Trish Sharon, two local chefs from Boulder. Presently, Lucky’s Market operates four locations within Colorado, three of which are situated within the same shopping center in Boulder, encompassing a Lucky’s Market grocery store, Lucky’s Bakehouse, and Lucky’s Bakehouse Cafe. Its fourth store at 425 South College Ave in Fort Collins opened in early 2019.