FREMONT, CA-A 9.5-acre property here that includes an auto dealership business and excess developable land has changed hands for $26 million, according to Marcus & Millichap, the firm that brokered the transaction. The sales price translates to a 6.75% capitalization rate on in-place income, according to M&M.
Located adjacent to the Pacific Commons master-planned business park, the Fremont Motorcars dealership occupies 7.2 acres and includes two buildings totaling 50,654 sf,net rentable. Net leased for 15 years to Sonic Automotive, the dealership includes a Volvo sales and business office in a 13,095-sf building and a Jaguar and Land Rover sales office, as well as parts and services department, in a 37,559-sf building.
The remainder of the property, approximately 2.3 acres, is undeveloped. Sonic has right of first refusal to expand onto the property with another sales office for another auto brand.
The seller was NICPA Fremont LLC, a merchant developer who built the dealership and leased it to Sonic. The new owner is Fremont Motor Cars LLC, whose managing partner is Dale Lohler. The acquisition completed an IRS 1031 exchange.
Chris Maling, the Los Angeles-based senior director of M&M's National Retail Group, and his brother Dave Maling had the disposition assignment. CB Richard Ellis represented the buyer. Chris Maling tells GlobeSt.com there were 16 offers submitted for the property and it sold for $750,000 above its list price.
The capitalization rate means the annual NOI from the property is 6.75% of the purchase price, or $1.75 million, which in turn translates to an annual rental rate of approximately $34 per sf of building area leased.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
