Newport Beach, Calif. (March 5, 2021) – SRS Real Estate Partners’ National Net Lease Group has completed the $2.875 million sale of a freestanding single-tenant property fully occupied by Starbucks Coffee with a drive-thru located at 421Vandalia Avenue in Porterville, CA (Tulare County). The asset is an outparcel to Riverwalk Marketplace, a shopping center anchored by Lowe’s Home Improvement.
SRS National Net Lease Group’s Managing Principals Matthew Mousavi and Patrick Luther represented the seller, a Southern California-based owner and developer. The buyer was a California-based investor who was in a 1031 exchange, represented by Bryan Cifranic of Commercial Retail Associates, Inc. The closing cap rate was 4.35 percent. The per square foot sale price of $960 reflected one of the highest in Tulare County for a single-tenant drive-thru property according to CoStar.
Built in 2008, the property was originally an El Pollo Loco restaurant until it was renovated in 2020 for the Starbucks brand. The 2,992-square-foot property is situated on .78 acres.
“This newly remodeled property features a 10-year triple-net lease with Starbucks,” said Mousavi. “Single-tenant assets with nationally recognized name brand occupiers and a drive-thru component such as this property are in very high demand as they provide minimal landlord responsibilities and a passive income. As this property was a credit net lease offering in California, we received substantial interest and multiple offers, ultimately selecting an all-cash private investor.”
Luther added, “In today’s environment, we are able to identify which retailers have adapted well to the pandemic restrictions and continue to see a robust investor buyer pool for this food and beverage asset niche.”
Starbucks is located at a signalized intersection of S. Jaye Street and State Highway 190, a main commuter thoroughfare serving Porterville that directly intersects with State Highway 65.
SRS’ National Net Lease Group experienced explosive growth in 2020, and plans to continue expansion of its teams across the country in 2021. Despite the COVID-19 crisis, SRS’ transaction volume was up 26 percent in 2020 year as compared to 2019. SRS’ National Net Lease Group and the western region of SRS’ Investment Properties Group successfully completed 534 transactions in 2020 valued at more than $1.9 billion.
Additionally, the group has more than 500 individual assets under LOI or in escrow and $1.8 billion in assets currently listed for sale. The National Net Lease Group has more than 50 net lease professionals nationwide, all collaborating on one central platform, with leadership, underwriting, and marketing efforts strategically located in Southern California.
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 25 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 www.srsre.com.
SRS’ Investment Properties Group (IPG) & National Net Lease Group (NNLG) 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 2019, the group completed more than 400 sales across more than 35 states and has over 50 NNLG professionals nationally. 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 srsnnlg.com.