Record Low Cap Rates as Single-Tenant NNN Leased Investments Continue to Be in High Demand
IRVINE, CALIF. – March 10, 2015 – (RealEstateRama) — Hanley Investment Group, a nationally-recognized boutique real estate brokerage and advisory firm specializing in retail property sales, announced today that the company has negotiated the sale of two single-tenant NNN Chase Bank properties totaling more than $9 million.
In Temecula, Calif., Hanley Investment Group represented the buyer and seller in the sale of an absolute triple-net ground lease occupied by a single-tenant Chase Bank at 26411 Ynez Road. Built in 1990, the 6,000-square-foot Chase Bank building is situated on a .63-acre single-tenant pad at the signalized intersection of Ynez Road and Winchester Road and includes a drive-thru. The purchase price was $4,525,000, representing a cap rate of 3.99 percent.
Hanley Investment Group’s Senior Vice President Jon Selznick and Senior Vice President Pat Kent represented the seller, a private investor from Torrance, Calif. The buyer, a private investor from Fremont, Calif., was represented by Hanley Investment Group’s Senior Vice President Jeremy McChesney.
“As far as we are aware, this is the lowest cap rate nationwide for a single-tenant net-leased bank with a primary term of less than 10 years remaining,” said Selznick. “It is a testament to the premium location of this asset at a hard-corner and busy signalized intersection and the continued cap rate compression we are seeing in the single-tenant net-leased market due to supply/demand drivers.”
“Hanley Investment Group generated multiple cash offers and procured a 1031 exchange buyer within 4 days of going to market,” said Kent.
McChesney added, “This is a hard-corner signalized intersection located in a busy grocery-anchored shopping center, which was very desirable for the investor.” Tenants of the shopping center include Food 4 Less, Pier1 Imports, TJ Maxx, Hobby Lobby, Dollar Tree and Kmart.
In Laguna Hills, Calif., Hanley Investment Group represented the seller in the sale of a NNN ground lease occupied by a single-tenant Chase Bank at 24799 Alicia Parkway. Built in 2013, the 4,415-square-foot Chase Bank building is situated on a 33,030-square-foot single-tenant pad at the signalized intersection of Alicia Parkway and Hon Avenue and includes a drive-thru. Over 19.5 years remains on the initial 20-year ground lease. The purchase price was $4,560,000, representing a record breaking cap rate of 3.84 percent.
Hanley Investment Group’s Selznick represented the seller, a private investor from Agoura Hills, Calif. The buyer, a private investor, was represented by Art Flores and Brian Cole of CBRE in Newport Beach.
“According to our latest research, this is the lowest cap rate for a brand new Chase Bank ground lease in the U.S. in recent years. It is a testament to the premium location in coveted south Orange County, and unprecedented cap rate compression due to supply and demand, and alternative investment drivers,” Selznick said.
Hanley Investment Group is marketing for sale an absolute triple-net ground lease occupied by a single-tenant Chase Bank in Phoenix, Ariz., at 3131 E. Lincoln Drive. Built in 2007, the 2,511-square-foot Chase Bank building is situated on a 21,736-square-foot single-tenant pad near the signalized intersection of 32nd Street and Lincoln Drive and includes a drive-thru. Approximately 11.5 years remains on the initial 20-year ground lease. The listed price is $5,775,000. Selznick, along with Hanley Investment Group’s Executive Vice President Eric Wohl, are the listing agents.
About Hanley Investment Group
Hanley Investment Group Real Estate Advisors is a retail investment advisory firm with a $5 billion transaction track record nationwide, who works closely with individual investors, lending institutions, developers, and institutional property owners in every facet of the transaction to ensure that the highest value is achieved. For more information, visit www.hanleyinvestmentgroup.com.