OCEANSIDE, CA-GlobeSt.com has exclusively learned that the sale of an Oceanside retail site featuring a master ground lease to a McDonald's Restaurant in a rare triple-net transaction that was valued at nearly $6.2 million with a capitalization rate of 4.08% has closed. Colliers International EVP Jereme Snyder, who represented the seller, Janmi Oceanside LLC, in the transaction, noted that the asset sold at a premium based on its unique location and strong credit tenant.
Located at 185 Old Grove Rd., the restaurant, sits on a hard-corner parcel of land measuring 1.61 acres. Added to the positive features of the property, according to Colliers, is a sublease with a Shell Gas Station and car wash located within a Ralphs Grocery and Lowe's Home Improvement Center anchored shopping center.
“McDonald's net leased inventory is in short supply across the country, especially for Southern California locations,” Snyder says. “This particular property was a challenge to sell due to its shorter lease term of eight years remaining.”
However, he continues, “we were able to locate a private 1031 exchange buyer to purchase it close to the full list price.”
Snyder noted that the buyer, Encin Real Estate of La Jolla, CA, can feel confident that a credit tenant like McDonald's, “which has proven itself to be recession proof and has one of the highest and most stable ratings among Wall Street investors, will renew its master ground lease at this busy location.”
While Snyder and his team represented the seller and are based in Colliers' Irvine offices, the buyer was represented by La Jolla, CA-based Greg Wagner of Capital Growth Properties.
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
