Colliers International has completed 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 percent, company officials have announced.
Colliers Executive Vice President 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.
“McDonald’s net leased inventory is in short supply across the country, especially for Southern California locations,” said Snyder. “This particular property was a challenge to sell due to its shorter lease term of eight years remaining. However, through our aggressive marketing, 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, 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.
Located at 185 Old Grove Road, the restaurant, sits on a hard-corrner parcel of land measuring 1.61 acres. Added to the positive features of the property 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.
While Snyder and his team represented the seller and are based in Colliers’ Irvine offices, the buyer was represented by La Jolla-based Greg Wagner of Capital Growth Properties.