A 2.6k sf, newly developed freestanding retail property occupied by Taco Bell in Norco sold for $2.67 mil ($1,027/sf). A franchisee for Taco Bell recently signed a 25-year ground lease at the site, located at 1460 Sixth St.
Situated on .49 acres, the property includes a drive-thru. The asset is part of Norco Gateway Shopping Center which is anchored by an 18k sf Grocery Outlet along with 6k sf of future retail shop space. 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, a local developer. The buyer, a private investor from Southern California, was repped by Hunter Morgan of CURB Realty. The closing cap rate was 3.93%, one of the lowest cap rates ever recorded for a single-tenant net lease QSR (quick service restaurant) in the Inland Empire per CoStar records.
“This is the second asset we have sold at Norco Gateway Center as part of a break-up strategy in order to maximize the value for our seller/developer client,” noted Mousavi. In October 2020, the Grocery Outlet property sold for $6 mil at close to a 5% cap rate.
“Single-tenant, QSR assets like Taco Bell are now even more highly coveted by investors in this pandemic environment as they seek cash flow with an essential, name brand tenant over the long-term,” said Luther.