A New York investor is seeking $60.7 million for 18 acres of Anaheim Hills’ land that’s home to a Home Depot Superstore.
SRS Real Estate Partners, a brokerage in Newport Beach, says it’s been hired by “a New York-based private investor” to sell the ground lease for the property at 1095 Pullman St. The site is near the Savi Ranch shopping area, Anaheim Hills Festival Shopping Center and the Yorba Linda Boulevard exit off the 91 Freeway.
Land leases are a bit of a commercial real estate rarity but are used to lower the cost of property development for a building owner. The savings come when the ground used to build a structure is rented (the lease) rather than purchased. Some investors prefer owning land leases instead of being a landlord with the usual challenges of controlling the buildings.
The Home Depot property has a 178,660-square-foot building, a 46,750-square-foot garden center and 923 parking spots. The home-improvement store’s land lease has six years remaining, with options to extend its stay.
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The “superstore” was created in 2012 when the original Home Depot on the site, built in 1995, was combined with a shuttered Kmart next door. The superstore, which includes an enhanced selection of home furnishings and design items, is the chain’s largest West Coast store and its overall second-largest outlet.
“This is quite possibly the nation’s highest-profile, single-tenant offering currently on the market,” said Michael Walseth, SRS senior vice president in charge of the listing. “With an irreplaceable, affluent Orange County location, no landlord responsibilities, corporate-guaranteed credit lease, and substantial building and site size, it features all the fundamentals institutional-grade investors are seeking.”