Newport Beach, Calif. (April 27, 2022) – SRS Real Estate Partners’ National Net Lease Group (NNLG) announced today it has completed the record-breaking $3.725 million ground lease (land ownership) sale of a two-tenant, two-building property located at 374 and 390 Santa Rosa Street in San Luis Obispo, CA. Jack in the Box occupies one building (2,584 sf) and Taco de Mexico occupies the other building (973 sf). This sale sets a record-low cap rate of 4.84% and highest price per square foot of $1,047 over the past 10 years for free-standing fast food-occupied assets in the city.
SRS NNLG’s Steven Roberts, Matthew Mousavi and Patrick Luther represented the seller, a California-based private investor. The buyer who was in a 1031 exchange and is a California-based private investor, was represented by Mark Hong of Korus Real Estate.
“This asset was hotly contested as it provided two single-tenant restaurants that are high performing and in a dense location that is a high barrier to entry for new development,” said Roberts. “Ultimately, SRS was able to secure record-breaking pricing for the area and the new ownership stands to benefit from the growth of the area as well as long-term valuation.”
Situated on 0.80 acres of land, the property is just one mile from California Polytechnic State University with more than 21,000 students. It also is near the on/off ramp to U.S. Highway 101 as well as an under-construction student housing complex directly behind the property. It is surrounded by a number of hotels, restaurants and retail, creating a strong consumer base to draw from.
In 2021, SRS’ Investment Properties Group and National Net Lease Group (NNLG) completed more than $3.1 billion in deal volume comprised of 899 transactions in 49 states, and currently has more than $2 billion in property on the market, with nearly 200 properties sold year-to-date in 2022.
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 26 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 2021, the group completed more than 899 sales across more than 49 states and has over 160 brokerage 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.