AutoZone Absolute-Net Ground
For Sale
$2,527,000
6270 Timber Rail Pt, Fountain, CO 80817
The tenant covers taxes, insurance, and maintenance under the absolute-net lease.
Property Size7,382 SF
Price / SF$342.32
Days on Market35
Property Features for 6270 Timber Rail Pt
General Information
Standard status
Active
Size
7,382 SF
Property subtype
Retail
Net Operating Income
$115,000
Financials
Cap Rate
4.55%
Gross Income
$115,000
Site & Location
Corner Location
Yes
Anchor Co-Tenants
Lowe's, King Soopers, Valvoline, Dutch Bros, Safeway, Chick-fil-A, 7-Eleven
Traffic Count
32,000 vehicles/day
Building Details
Tenancy
Single
Listing Agency:
Phoenix Commercial Advisors
Listed By:
Chad Tiedeman · License #SA536326000
(602) 288-3472
Source:
Phoenixcommercialadvisors
Added: Aug 2
Changed: Aug 24
Last Checked: Sep 5 at 5:13AM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of Phoenix Commercial Advisors
Investment Insights
Based on property information with market context.
This 7,382 SF AutoZone property is structured as a 20-year absolute-net ground lease with no landlord responsibility for taxes, insurance, or maintenance. AutoZone, Inc. provides a corporate guaranty rated BBB / Baa1. The fee-simple land includes a tenant-constructed store that reverts to ownership at the end of the lease term. Contractual increases occur at 10% every 5 years after year 10, with four additional 5-year options extending toward 2066.
The property is positioned on Mesa Ridge Pkwy with ±32,000 cars per day at the site, based on CDOT 2024 data. It sits across from Mesa Ridge High School, which has 1,300+ students, and is minutes from Fort Carson. Nearby co-tenants and commercial anchors include Lowe's, King Soopers, Valvoline, Dutch Bros, Safeway, Chick-fil-A, and 7-Eleven. More than 14,000 new dwelling units are planned within the immediate trade area.
The property is positioned on Mesa Ridge Pkwy with ±32,000 cars per day at the site, based on CDOT 2024 data. It sits across from Mesa Ridge High School, which has 1,300+ students, and is minutes from Fort Carson. Nearby co-tenants and commercial anchors include Lowe's, King Soopers, Valvoline, Dutch Bros, Safeway, Chick-fil-A, and 7-Eleven. More than 14,000 new dwelling units are planned within the immediate trade area.
Key Highlights
- 7,382 SF AutoZone store on fee‑simple land
- 4.55% cap rate with a 20‑year ground lease
- Absolute‑net structure assigns taxes, insurance, and maintenance to the tenant
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$105,557
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
4.18%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$2,111,140
$2.1M
Cap Rate 7%
$1,507,957
$1.5M
Cap Rate 9%
$1,172,856
$1.2M
Market Conditions
NOI Build-Up for 7,382 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$158.6K $21.48/SF
− Vacancy
−$7.8K −$1.05/SF
EGI
$150.8K $20.43/SF
− OpEx
−$45.2K −$6.13/SF
NOI
$105.6K $14.30/SF
Area
El Paso County, CO
Vacancy
4.90%
Lease Rate
$21.48 /SF/Yr
Expense Ratio
30.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$2,111,140
Cap Rate 7%
$1,507,957
Cap Rate 9%
$1,172,856
Alternative Uses
Best Use
Retail
$1.51M
$1.32M – $1.76M
NOI $105,557 @ 7.0% cap · market cap 4.18%
Second Best
—
—
no second resolved use
Theoretical Best
Multifamily LT 5
$98.44M
$86.13M – $114.84M
NOI $6,890,579 @ 7.0% cap · market cap 272.68%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
32,000 VPD
Traffic count
Single-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
10
Businesses Nearby
Explore this area
Business Placement
Demographics for 80817, CO
31,621
Population
11,649
Households
2.7
Avg Household Size
31
Median Age
32%
College-Educated
95%
High-School Grad
115.1 sq mi
ZIP Area
275
Density / Sq Mi
$85,121
Median Household Income
$50,434
Median Earnings
$1,758
Median Rent
$377,300
Median Home Value
Market
Vacancy Rate% for Retail in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
NNN property - The tenant covers taxes, insurance, and maintenance under the absolute-net lease.
Where is this nnn property located?
The property is located at 6270 Timber Rail Pt Fountain, CO.
What is the asking price?
The asking price for this property is $2,527,000.
What are key features of this property?
This property features: 7,382 SF AutoZone store on fee‑simple land; 4.55% cap rate with a 20‑year ground lease; Absolute‑net structure assigns taxes, insurance, and maintenance to the tenant
