Commercial Real Estate Transaction Alert
SRS Real Estate Partners’ National Net Lease Group has announced the $6 million sale of a new construction, 18,000-square-foot, single-tenant property occupied by Grocery Outlet at 1428 Sixth Street in Norco, CA.
SRS National Net Lease Group’s Managing Principals Matthew Mousavi and Patrick Luther represented the seller, a local developer. The buyer, a family partnership, was represented by Mark Bitterlin of Trust Real Estate Services.
Grocery Outlet opened its doors in May 2020 and is situated on 1.72 acres. It is the anchor tenant to the new Norco Gateway Shopping Center. Other tenants at the center include Taco Bell and 6,000 sf of future retail shops. Other nearby retailers include Rite Aid, Stater Bros, Boot Barn, 99 Cents Store, and Dollar Tree, among others.
“On behalf of the seller/developer, we went to market on this asset as a pre-sale opportunity during the COVID-19 crisis,” said Mousavi. “We are also in escrow on the adjacent Taco Bell property as part of a break-up strategy to maximize value for our client. The cap rate on the Taco Bell is in the low 3 percent range.”
“Discount, essential needs retailers are highly sought after by investors as they provide stability even during economic uncertainty,” said Luther. “This high-quality, newly constructed property offered the buyer a 10-year corporate guaranteed lease in a dense, infill area with high barriers to entry for development.”
“Despite being in the middle of the pandemic and county-wide closures during the marketing process, we were able to generate significant offer activity and manage through the financing process,” added Mousavi. “We continue to experience strong investor demand for essential use, net lease assets, particularly for grocery stores.”
The property has a population of more than 284,000 residents and 84,000 employees within a five-mile radius. It is also adjacent to and highly visible from the 15 freeway.
SRS’ National Net Lease Group has continued its explosive growth in the past year, and plans to continue expansion of their teams across the country throughout the remainder of 2020. SRS’ National Net Lease Group and the western region of SRS’ Investment Properties Group successfully completed more than 300 sales to date in 2020. Of those transactions SRS’ National Net Lease Group (NNLG) has closed 223 transactions since the COVID-19 crisis began. These transactions alone are valued at more than $965 million. Additionally, the group has more than 500 individual assets under LOI or in escrow and $1.8 billion in assets currently listed for sale.