Ground Lease Sale of a New Construction Chase Bank Property Sets Record Low Cap Rate

SRS Real Estate Partners completed the $4 million ground lease (land ownership) sale of a Chase Bank retail property located at 27980 Clinton Keith Road in Murrieta, Calif. With construction completed in 2024, the 3,470-square-foot (sf) property is situated on 1.57 acres and has a 20-year, corporate-guaranteed lease in place.

The transaction closed at a price per square foot of $1,152. It also sold at a record low cap rate of 3.75% which is the lowest for a Chase Bank property sold over the past 18 months, according to CoStar records.

SRS Capital Markets Vice President Winston Guest and Managing Principals Matthew Mousavi and Patrick Luther represented the seller, a California-based private developer. The buyer was a California-based private investor.

The asset is within The Vineyard Shopping Center, a 26.3-acre center anchored by Costco Wholesale. More than 208,000 residents and 48,000 employees are within a five-mile radius of the center which is also within walking distance to several single-family and multi-family communities.

“Chase’s best-in-class investment grade credit and long-term 20-year lease provided the new ownership with a very secure long-term investment with zero landlord responsibilities,” said Guest. “Additionally, this location is within a growing and affluent area and is positioned on the most prominent and visible corner entrance of The Vineyard Shopping Center.”

Last month, SRS announced another record-breaking sale within the same center. It was the $5 million sale of a two-tenant retail property located at 27970 Clinton Keith Road occupied by Verizon Wireless and Chipotle Mexican Grill (with drive-thru). Both tenants have 10-year, corporate-guaranteed triple-net leases in place. This transaction broke two sales records for new construction multi-tenant retail properties in Southern California over the last 12 months, with a record low cap rate of 4.93% and the highest price per square foot of $975. 

Year to date, SRS Capital Markets has completed approximately $1 billion in deal volume comprised of 240 transactions in 45 states. SRS currently has in excess of 659 properties actively on the market with a market value surpassing $3.2 billion.

About SRS Real Estate Partners

Founded in 1986, SRS Real Estate Partners is building upon its retail foundation to provide extensive commercial real estate solutions to tenants, owners, and investors. Headquartered in Dallas, with 29 offices in the U.S., SRS has grown into one of the industry’s most influential and respected leaders. Our commitment to excellence is strengthened by our Guarantee of Value and our success is measured in the achievement of our clients’ objectives, satisfaction, and trust. For more information, please visit srsre.com.