Salt Lake City, Utah (May 6, 2020) – SRS Real Estate Partners’ National Net Lease Group is pleased to announce the $1,026,000 leasehold sale (building ownership) of a newly constructed, freestanding, single-tenant retail property at 421 E 400 S in Salt Lake City. The 1,920-square-foot property is occupied by Starbucks who signed a new, corporate guaranteed, 10-year, triple net lease and opened its doors in the new space in late 2019.
SRS National Net Lease Group’s Sabrina Kortlandt, Kyle Fant, Jack Cornell and Britt Raymond represented the seller, Wadsworth Development, a well-known Salt Lake City-based developer. The buyer was a Washington-based investor who was in a 1031 exchange.
Situated on .19 acres, the property includes a drive-thru and is well-located on a major retail corridor just two miles from Salt Lake City’s downtown district. The developer was able to work with the city to get a permit for a drive-thru at the location, which is extremely rare in the immediate area. This new site is a relocation for Starbucks who previously had an in-line store within a strip center down the street.
“Leasehold interest deals are typically challenging to sell, however, this property is in a prime location in the heart of Salt Lake City,” said Kortlandt. “The inconsistent bumps in both the ground and building leases caused the cash flow to decline over the base term, which was an additional obstacle we had to overcome. Ultimately, the buyer understood the intrinsic real estate fundamentals of the asset which included a strong brand name tenant with a long-term lease in an ideal location.”
Raymond added, “Starbucks store sales have fared well during the COVID pandemic because of their drive-thru and delivery options. The buyer was motivated because Starbucks was able to continue to operate the drive-thru service at this location. This helped us to complete a complicated transaction during an uncertain time in the market.”
The property is within a dense infill location with a combined total of 500,000 residents and employees within a five-mile radius. It is also near the University of Utah and is less than nine miles from the Salt Lake City International Airport.
SRS’ National Net Lease Group, with more than $1.5 billion in assets currently listed for sale, successfully completed more than 400 transactions in 2019, across 35 states nationwide.
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’ 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.