A single-tenant, freestanding property with drive-thru occupied by Del Taco in the western San Fernando Valley community of Chatsworth sold for $3.02 mil. The tenant has over 12 years remaining on its long-term absolute NNN corporate-guaranteed lease. The property, just under 2k sf in size, sold for $1,540/sf.
Built in 1989 and situated on .41 acres at 21920 Lassen St, the property includes a 24-hour drive-thru and is well located at a signalized intersection of Lassen and Topanga Canyon Blvd, which sees more than 61,300 vehicles per day. It is well-positioned within the perimeter of a massive industrial park which is home to more than 100 companies. In addition to the thousands of employees working nearby, the asset also benefits from more than 345,000 residents within a five-mile radius.
Matthew Mousavi and Patrick Luther with SRS’ National Net Lease Group, in cooperation with Vice President Brandon Trevellyan of Capital Real Estate Ventures Inc, represented the seller, a privately held partnership. The buyer, a private investor seeking passive cash flow, was represented by Warren Berzack of Lee & Associates. The closing cap rate was approximately 4.7%.
“We continue to see sustained demand for corporate-guaranteed, well-located single-tenant investment properties in Los Angeles county,” said Mousavi. “Specifically with Del Taco, within the last several months we have transacted multiple Del Taco properties throughout Southern California ranging from 3.71% cap rate to the upper 4% cap rate range, clearly demonstrating that investors continue to accept these compressed cap rates for corporate credits and Southern California real estate.”