A private investor paid $3.375 mil for the ground lease of a single-tenant property fully occupied by Joe’s Crab Shack in Garden Grove. Joe’s Crab Shack has been at the property for over 10 years and has approximately two years remaining on its absolute triple-net lease with options to extend. The deal came in at a cap rate of 4.22%.
Located at 12011 Harbor Blvd, the 7.1k sf asset is situated along restaurant row, just 1.2 miles from Disneyland. The property is located at the signalized intersection of Chapman Ave and S. Harbor Blvd, which sees a combined 60,000 vehicles per day. Harbor Blvd is the main thoroughfare for visitors travelling to Disneyland.
The property is also one block away from Great Wolf Lodge and is also surrounded by numerous hotels including the Sheraton, Wyndham, Marriott Suites and Homewood Suites, among others. It is directly across from a Target-anchored retail center and is two miles from Outlets at Orange.
Patrick Luther and Matthew Mousavi with SRS’ National Net Lease Group represented the seller and well as the buyer – both of which are Southern California-based private investors. The buyer paid all cash and was not in a 1031 exchange. The sale is part of an approximately $20 mil break-up strategy.