Sale is part of a break-up strategy of French Valley Marketplace valued in excess of $40 million
Newport Beach, CA (May 2, 2023) – SRS Real Estate Partners’ National Net Lease Group (NNLG) announced today it has completed the $3.3 million ground lease sale of a 4,400-square-foot property occupied by McDonald’s.
The newly developed property with a drive-thru opened its doors in 2023 and has a 20-year absolute triple-net corporate-guaranteed ground lease in place. The freestanding building is within French Valley Marketplace located at 35958 Winchester Road in French Valley, CA. French Valley is in the Inland Empire market of Southern California in southwestern Riverside County, near the cities of Murrieta and Temecula.
SRS NNLG’s Managing Principals Matthew Mousavi and Patrick Luther and Vice President Jack Cornell represented the seller, a Southern California-based private developer. The buyer, a Southern California-based private investor, was represented by Austin Dias of Duhs Commercial. The closing cap rate was 3.48% which is one of the lowest for a McDonald’s-occupied asset in Southern California this year.
French Valley Marketplace totals 78,000 sf and in addition to McDonald’s includes Grocery Outlet, Rite Aid, Eos Fitness, Chipotle, and 7-Eleven among others.
“This most recent ground lease sale is part of a break-up strategy of French Valley Marketplace valued in excess of $40 million that SRS is conducting on behalf of the seller/developer,” said Mousavi. “We have sequentially been transacting the phases upon the leases going non-contingent and have additional phases to follow as the property completes build-out including the 7-Eleven site which is currently in escrow. With McDonald’s, we received multiple sub 4% cap offers ultimately transacting with an all-cash investor from Southern California.”
The site is just under one-acre of land and is situated at the intersection of Winchester Road and Thompson Road. There are more than 151,000 residents and 22,000 employees within a five-mile radius of the property.
In 2022, SRS’ Investment Properties Group (IPG) and National Net Lease Group (NNLG) completed more than $2.8 billion in deal volume comprised of 705 transactions in 49 states. SRS currently has in excess of 550 properties actively on the market with a market value surpassing $2.8 billion.
About SRS Real Estate Partners
Founded in 1986, SRS Real Estate Partners is building upon its retail foundation to provide extensive commercial real estate solutions to tenants, owners, and investors. Headquartered in Dallas, with more than 25 offices in the U.S., SRS has grown into one of the industry’s most influential and respected leaders. Our commitment to excellence is strengthened by our Guarantee of Value and our success is measured in the achievement of our clients’ objectives, satisfaction, and trust. For more information, please visit 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 2022, the group completed more than 705 sales across 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 srsre.com/national-net-lease-group.