SRS Real Estate Partners’ National Net Lease Group completed the $3.375-million ground lease sale of a single-tenant property fully occupied by Joe’s Crab Shack. Located at 12011 Harbor Blvd. in Garden Grove, CA, the asset is situated along restaurant row near Disneyland.
SRS’ Patrick Luther and Matthew Mousavi represented the seller as well as the buyer – both of which are SoCal-based private investors. The buyer paid all cash and was not in a 1031 exchange. The closing cap rate was 4.22%.
Mousavi says “This opportunity offered exceptional real estate in the heart of a thriving tourist destination. Additionally, the 4.22% cap rate set a record for the area for restaurants with less than two years remaining on the lease.”
Joe’s Crab Shack has been at the property for more than 10 years, and has roughly two years remaining on its absolute triple-net lease with options to extend.