A 3k sf, freestanding single-tenant property fully occupied by Starbucks Coffee with a drive-thru in Porterville, CA was purchased by a CA-based 1031 exchange investor for $2.875 mil ($958/sf).The asset, located at 421 Vandalia Ave, was sold by a SoCal-based owner/developer.
Built in 2008, the property was originally an El Pollo Loco restaurant until it was renovated in 2020 for the Starbucks brand. The asset is an outparcel to Riverwalk Marketplace, a shopping center anchored by Lowe’s Home Improvement.
The structure is situated on .78 acres at the signalized intersection of S. Jaye St and State Hwy 190, a main commuter thoroughfare serving Porterville that directly intersects with State Hwy 65. Porterville is a central CA city roughly 50 miles north of Bakersfield.
Matthew Mousavi and Patrick Luther with SRS National Net Lease Group represented the seller in the deal. The buyer was repped by Bryan Cifranic of Commercial Retail Associates Inc. The closing cap rate was 4.35%. The per square foot sale price of $960 reflected one of the highest in Tulare County for a single-tenant drive-thru property according to CoStar.
“This newly remodeled property features a 10-year triple-net lease with Starbucks,” said Mousavi. “Single-tenant assets with nationally recognized name brand occupiers and a drive-thru component such as this property are in very high demand as they provide minimal landlord responsibilities and a passive income. As this property was a credit net lease offering in California, we received substantial interest and multiple offers, ultimately selecting an all-cash private investor.”