1017 Market Plz, Pueblo, CO 81007

Lee & Associates is pleased to exclusively offer for sale to qualified investors the opportunity to purchase a 100% fee-simple interest (land & building) in a Safeway investment property located at 1017 N Market Plaza in Pueblo, CO (the “Property”). Constructed in 2000, the Property consists of a 56,140-square foot building that sits on an approximately 5.60-acre parcel within the Pueblo West Marketplace Shopping Mall.
The property is leased to Safeway Inc., a subsidiary of Albertsons Companies, Inc. (NYSE: ACI). Headquartered in Boise, Albertsons Companies is one of the largest food and drug retailers in the United States, reporting revenues of over $62B (2020) and operating 2,252 stores across 34 states and the District of Columbia. Albertsons Companies, Inc. operates under 20 well-known grocery store banners including Albertsons, Safeway, Vons, Jewel-Osco, Shaw’s, Acme, Tom Thumb, Randalls, United Supermarkets, Pavilions, Star Market, Haggen and Carrs, as well as meal kit company Plated based in New York City. Safeway has operated at this location for over 20 years since it was built in 2000. The tenant exercised their first Option period early in February of 2020, extending their lease an additional five years commencing September 9th. The corporate guaranteed NNN lease features (9) additional 5-year options to renew with increases in each Option Period.
Safeway is currently paying $8.35 per square foot in rent, which is approximately 25%-30% below the average market rent for a national grocery store in both Pueblo and the State of Colorado. This Safeway store is also performing at a very high level with estimated gross sales of $35,100,000 annually ($625 psf) and an extremely low 1.3% rent to sales ratio. The lower rent and extremely high store performance ensure that Safeway will continue to profitably operate long-term at this site for many years to come.