A newly constructed, 55k sf Hobby Lobby in Turlock, CA sold for $9.57 mil ($174/sf). The building is located at 3701 Countryside Dr, and is adjacent to Monte Vista Crossing, an area with the largest concentration of retail development in Turlock.
Hobby Lobby opened in September of 2017 and signed a 15-year, corporate guaranteed lease. Turlock is situated about 15 miles of Modesto.
Matthew Mousavi and Patrick Luther, both managing principals of SRS’ NNLG, represented the seller in this transaction. The buyer, a NoCal-based partnership that paid all-cash, was repped by Capital Pacific.
According to Mousavi, the transaction closed at 96% of the asking price and a historically low 5.75% cap rate for a single-tenant net lease Hobby Lobby nationally. “The ideal location of the property surrounded by over 1 msf of retail, as well as excellent fundamentals in terms of rent and price per foot, made this property an extremely attractive opportunity.”