A newly-constructed, 18k sf single-tenant property occupied by Grocery Outlet in Norco was acquired for $6 mil ($333/sf) by a family investment entity. The property, situated on 1.72 acres at 1428 Sixth St, just east of I-15, was sold by a local developer.
Grocery Outlet opened its doors in May 2020 and is the anchor tenant to the new Norco Gateway Shopping Center. Other tenants at the center include Taco Bell and 6k sf of future retail shops. Other nearby retailers include Rite Aid, Stater Bros, Boot Barn, 99 Cents Store, and Dollar Tree, among others.
Matthew Mousavi and Patrick Luther with SRS National Net Lease Group represented the seller in the deal. The buyer was repped by Mark Bitterlin of Trust Real Estate Services.
“We went to market on this asset as a pre-sale opportunity during the COVID-19 crisis,” said Mousavi. “We are also in escrow on the adjacent Taco Bell property as part of a break-up strategy to maximize value for our client. The cap rate on the Taco Bell is in the low 3 percent range.”
“Discount, essential needs retailers are highly sought after by investors as they provide stability even during economic uncertainty,” said Luther. “This high-quality, newly constructed property offered the buyer a 10-year corporate guaranteed lease in a dense, infill area with high barriers to entry for development.”