Newport Beach, Calif. (January 22, 2019) – SRS Real Estate Partners’ National Net Lease Group has completed the $3.45 million ground lease (land ownership) sale of a single-tenant restaurant property fully occupied by Red Robin just 1.2 miles from Disneyland. Situated at 12007 Harbor Blvd. in Garden Grove, the asset totals 7,346 square feet and is on a corporate-guaranteed triple-net lease with Red Robin Gourmet Burgers, Inc.
SRS’ National Net Lease Group Managing Principals Matthew Mousavi and Patrick Luther represented the seller, a Los Angeles-based partnership. SRS Senior Vice President Michael Walseth represented the all-cash buyer, a Los Angeles-based, private non-1031 investor.
“This Red Robin offered the buyer zero landlord responsibilities and a very high profile Orange County location near the Disneyland Resort and the Anaheim Convention Center, dozens of hotels, and is just one block from The Great Wolf Lodge,” said Mousavi. “Single tenant assets in high barriers to entry markets such as this one are scarce. We were able to put this deal together without having to go to market, and achieved low 4 percent cap rate pricing for this parcel which featured a short-term lease and substantial upside potential.”
Luther added, “Our SRS National Net Lease Group is also marketing three additional single-tenant pads within this retail center valued at approximately $17 million, via a break-up strategy. Of the three remaining parcels, we have offers on all assets and expect to exit the project within our expected timeframes, meeting the seller’s objectives, and resulting in low 4 percent cap rate pricing.”
“This purchase marks my fifth off-market acquisition with this buyer to deliver on this investor’s objective of accumulating a sizable portfolio of NNN properties that are leased to best-in-class tenants in prime locations throughout Orange County,” comments Walseth. “The buyer was drawn to the corporate credit of the tenant, short term nature of the lease, low cost per foot, replaceable rent, and strong restaurant sales at the location.”
Walseth added, “In order to successfully acquire properties in Orange County and other hot markets, you have to be reasonably aggressive in your approach. There are certain tactics that provide the seller the confidence of a successful closing, yet give the buyer time to check all the necessary due diligence boxes. It pays to use creativity in deal-making when competing against other strong buyers.”
The asset is also across the street from a Target-anchored retail center is and near the Outlets at Orange with tenants that include Nike Factory Store, Levi’s Outlet, and Nordstrom Rack, among others. More than 866,000 residents and 400,000 employees support the local trade area within a five-mile radius of the property not to mention the hundreds of thousands of tourists that come into the area on a monthly basis.
SRS’ National Net Lease Group successfully completed more than 270 sales in 2017; in 2018, the group executed more than 300 transactions across more than 35 states nationwide, and has over $1 billion in assets currently listed for sale.
About SRS Real Estate Partners
SRS Real Estate Partners is the largest real estate company in North America exclusively dedicated to retail services. Headquartered in Dallas with more than 20 offices worldwide, SRS’ strong reach and international presence provide the company with unparalleled knowledge both globally and domestically. As a result, clients of SRS have a competitive edge through a full range of offerings including brokerage services, corporate services, development services, and investment services. Since its inception in 1986, SRS has built a strong foundation in the retail real estate world and grown into one of the industry’s most influential and respected leaders. Our success is measured in the achievement of our clients’ objectives, satisfaction and trust. For more information, please visit srsre.com.
SRS’ National Net Lease Group is a unified platform of seasoned net lease professionals located and transacting nationally with all underwriting and marketing efforts strategically located in Southern California. In 2017, the group completed more than 270 sales across more than 30 states. From proactive sales to targeted acquisitions and tailored debt and equity solutions, SRS’ National Net Lease Group offers comprehensive services to net lease owners and investors. Superior speed-to-market, world-class marketing materials, a deep investor database and unparalleled retail submarket intelligence from the entire SRS platform allow SRS’ National Net Lease Group to deliver the best possible returns. For more information, please visit srsre.com/national-net-lease-group.