Here’s the scoop on two single-tenant NNN bank property sales in SoCal totaling more than $12.5 mil. The properties are located in Culver City and Laguna Hills.
In Culver City, a single-tenant NNN Wells Fargo Bank at 10011 Washington Blvd, located directly across the street from the headquarters of Sony Pictures Entertainment Studios, traded at a 4.23% cap rate. Wells Fargo occupies the 8.3k sf building, built in 1983 and situated on a 20.5k sf lot at the signalized intersection of Washington Blvd and Clarington Ave.
The sale included both the land and the building. The price was not disclosed.
Hanley Investment Group‘s Managing Director William B. Asher and Senior Vice President Patrick G. Kent represented the buyer, a private investment group based in Los Angeles. Jeremy S. McChesney, a senior vice president with Hanley, repped the seller, Bershon Realty Company of Los Angeles.
According to McChesney, “We had multiple all cash offers on the property with several close to list price. This is a testament to the value of the location and the strength of the tenant. Even with a shorter lease term, investors recognized the property as an outstanding opportunity to purchase a well located West Los Angeles investment.”
The Laguna Hills deal was for a NNN ground lease occupied by a single-tenant Chase Bank at 24799 Alicia Pkwy. Built in 2013, the 4.4k sf Chase Bank building is situated on a 33k sf single-tenant pad at the signalized intersection of Alicia Pkwy and Hon Ave, and includes a drive-thru.
Over 19.5 years remain on the initial 20-year ground lease. The sale represented a record breaking cap rate of 3.84%. Hanley Investment Group’s Senior Vice President Jonathan T. Selznick represented the seller, a private investor from Agoura Hills. The buyer, a private investor, was repped by Art Flores and Brian Cole of CBRE in Newport Beach. The price could not be disclosed.
“We generated over 30 offers in the first two days of marketing the property – five of which were at full asking price. The buyer opened escrow with no contingencies at $60k above asking price and closed escrow upon receipt of the tenant estoppel,” said Selznick.
“According to our research, this is the lowest cap rate for a brand new Chase Bank ground lease in the country in recent years. It is a testament to the premium location in highly-coveted South Orange County, and unprecedented cap rate compression due to current supply and demand, and alternative investment drivers,” added Selznick.