Investment Summary
Price | $6,680,000 |
Cap Rate | |
NOI | |
Lease Term | 15 Years |
Lease Type | Net, With Tenant Responsible For All Taxes, Insurance, And Maintenance, Excluding Structure |
Rental Increases | 10.5% Rental Increases Every Five (5) Years |
Year Built | 2019 |
Building Size | 18,000 SF |
Lot Size | 1.80 acres (78,408 SF) |
Status | Under Contract |
Lead Brokers | Ryan Forsyth Cushman & Wakefield 415.413.3005 ryan.forsyth@cushwake.com CA RE License #01716551 Vincent Aicale Cushman & Wakefield 415.690.5522 vince.aicale@cushwake.com CA RE License #01728696 Michael T. Yuras, CCIM Cushman & Wakefield 415.481.0788 michael.yuras@cushwake.com CA RE License #01823291 Scott Crowle Senior Director 415.604.4288 scott.crowle@cushwake.com CA RE License #01318288 |
Investment Highlights
RARE NNN LEASE TO STRONG GROCERY TENANT
» Long-term, 15-year NNN lease with four five-year option periods
» NNN lease provides ideal passive investment for an out-of-area investor
» 10.5% rental increases every five years, providing a hedge against inflation
» Grocery Outlet (NASDAQ: “GO”) is the nation’s largest extreme value grocery retailer, with more than 320 locations and over $2.29 billion in annual revenue
» Recently upgraded to a B-1 rating by Moody’s
» Grocery Outlet’s recent IPO raised net proceeds of approximately $399.6 million, about $150 million more than initially expected
» Grocery Outlet is continuing its expansion nationally, with 32 new stores expected to open by year-end 2019
HIGH-TRAFFIC LOCATION IN PRIMARY RETAIL CORRIDOR
» Excellent visibility and access to 10,337 vehicles per day on Lake Isabella Boulevard, the city’s primary retail corridor
» Immediate access to State Route 178, the primary highway between Bakersfield and the Lake Isabella reservoir
» Surrounded by a healthy mix of local and regional retailers, as well as several national tenants
CENTRAL LOCATION NEAR COMMUNITY AMENITIES AND TOURIST ATTRACTIONS
» Located in downtown Lake Isabella
» Near both Woodrow W. Wallace Middle School and Kern Valley High School, which have a combined enrollment of 873 students
» Minutes from several recreational areas, including Lake Isabella, one of the largest reservoirs in California
» Close to the Sequoia National Forest and the Kern River, a popular spot for whitewater rafting
» Area is a mecca for hikers, boaters, water skiers, fishermen, birders, hunters, windsurfers,
kayakers, and other outdoor recreationists
2019 CONSTRUCTION
» High-quality construction completed in 2019
» Features latest Grocery Outlet store design and concepts
» New building, limiting near-term deferred maintenance or capital costs
Property Description
SOLD
The property is strategically located on Lake Isabella Boulevard, with excellent visibility and access to 10,337 vehicles per day. The property enjoys immediate access to State Route 178, the primary highway between Bakersfield and the Lake Isabella reservoir. Lake Isabella Boulevard serves as the city’s primary retail corridor, and the property is surrounded by a healthy mix of local and regional retailers, as well as several national tenants, including True Value, Taco Bell, Subway, and Shell. The property is also a short distance from Kern Valley Plaza, anchored by Vons and featuring Rite Aid, Family Dollar, Starbucks, Burger King, and several others.
Centrally located in downtown Lake Isabella, the property is close to important community amenities and popular recreational areas. The property is near both Woodrow W. Wallace Middle School and Kern Valley High School, which have a combined enrollment of 873 students. Several recreational areas are just minutes from the property, including Lake Isabella, one of the largest reservoirs in California. The lake is open to many activities, including fishing, boating, camping, windsurfing, and water skiing. The property is also close to the Sequoia National Forest and the Kern River, a popular spot for whitewater rafting. Additionally, the property is surrounded by residential neighborhoods, which will be served by Grocery Outlet.