Investment Summary
Price | $10,375,000 |
Cap Rate | |
NOI | |
Lease Term | 11 Years and 2 Months |
Lease Type | NNN, with Tenant Responsible for Taxes, Insurance, and Maintenance, Excluding Structure |
Rental Increases | $1.50 PSF Rental Increases at Beginning of Each Option Period |
Year Built | 2019 |
Building Size | 41,000 SF |
Lot Size | 3.30 Acres (143,944 SF) |
Status | Closed |
Lead Brokers | Vincent Aicale Cushman & Wakefield 415.690.5522 vince.aicale@cushwake.com CA RE License #01728696 Ryan Forsyth Cushman & Wakefield 415.413.3005 ryan.forsyth@cushwake.com CA RE License #01716551 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
NEW LONG-TERM NNN LEASE TO STRONG TENANT
» Leased to Best Buy for 11 years and 2 months
» Best Buy Inc. is investment grade (BBB rated by S&P) – Recently Upgraded
» In its most recent fiscal year, Best Buy’s total revenue climbed 7% to $42.2 billion
» Best Buy’s stock price has increased more than 200% over the past five years
RELOCATION AND EXPANSION STORE
» Best Buy’s store sales are rumored to be $1,000 per square foot at previous location
» Best Buy is relocating from a smaller space within Packwood Creek, where it has operated successfully for 15 years
» Best Buy is moving from the Lowe’s-anchored side of Packwood Creek to the superior, Target-anchored side of Packwood Creek
» Best Buy increasing its footprint is a testament to how well the store is doing in the Packwood Creek retail area
HIGH-TRAFFIC LOCATION IN REGIONAL POWER CENTER
» Prime location in Packwood Creek, part of Visalia’s largest power center
» Excellent location on Mooney Boulevard, Visalia’s primary retail corridor
» Situated between Mooney Boulevard’s signalized intersections with Visalia Parkway and West Cameron Avenue, with excellent access to 53,300 vehicles per day
» Part of the highly successful Packwood Creek Center, with anchor national tenants, including Target, Costco, and Lowe’s
» Costco, which draws an estimated 1.4 million customers annually from a significantly wide radius, greatly increasing the property’s customer base
PRIME LOCATION IN REGIONAL SHOPPING HUB WITH LARGE CUSTOMER BASE
» Visalia is the largest city between Fresno and Bakersfield and has a trade area of approximately 733,000 people
» Population of 144,762 within a five-mile radius of the property
Property Description
SOLD
The property is located in Packwood Creek – West, situated between Mooney Boulevard’s signalized intersections with Visalia Parkway and West Cameron Avenue, with excellent visibility and access to a combined traffic volume of 53,300 vehicles per day. Packwood Creek – West and Packwood Creek – East make up Visalia’s largest power center, featuring major national tenants like Target, Lowe’s, Michaels, Kirkland’s, Pier 1 Imports, Cost Plus World Market, and many others. Additionally, the property is within walking distance of The Grove at Packwood Creek, a regional shopping center development featuring Sportsman’s Warehouse, along with approximately 247,900 square feet of additional retail space. The property is also close to a high-volume Costco, which draws an estimated 1.4 million customers annually from a significantly wide radius, greatly increasing Best Buy’s customer base. Other major shopping centers in the nearby area include Visalia Mall, anchored by Macy’s and JCPenney, and Sequoia Mall, featuring Sears and Regal Cinemas.
The property benefits from its prime location within a regional shopping hub. The property is supported by robust demographic, with a population of 144,762 within a five-mile radius. Additionally, as the largest city between Fresno and Bakersfield, Visalia serves as a regional trading center for an estimated 733,000 people living within the Tulare, Kings, southern Fresno, and northern Kern counties.