CORONA DEL MAR, CALIF. – Hanley Investment Group Real Estate Advisors, a nationally-recognized real estate brokerage and advisory firm specializing in retail property sales, completed the sale of a single-tenant absolute net-leased Del Taco property located at 2060 S. La Cienega Boulevard in Los Angeles, Calif. The purchase price was $2.5 million or $1,386 per square foot. The property sold at a cap rate of 3.63% – a record low for a freestanding Del Taco nationwide, according to CoStar Group.
Hanley Investment Group Senior Vice President Jeremy McChesney represented the seller, a private investor from Orange County, Calif. The all-cash buyer, a local family trust, was represented by Shah Noorvash with Coldwell Banker Commercial in Beverly Hills, Calif.
The 1,804-square-foot Del Taco building was built in 1965 on a .24-acre lot at the hard-corner signalized intersection of La Cienga Boulevard and Cadillac Avenue with an estimated 83,000 cars per day. The Del Taco 24-hour restaurant has a drive-thru and was completely re-modeled in 2004.
According to McChesney, the Del Taco lease has nine years remaining on the original lease term guaranteed by a one-unit Del Taco franchisee. The lease also includes four five-year options to extend with increases, McChesney stated.
Del Taco is located adjacent to Kaiser Permanente’s 15-acre West Los Angeles complex, which has 305 beds, over 2,900 employees and 517 physicians. McChesney also noted that there are one million people within five miles of the property with an average household income of $78,000.
“Through Hanley Investment Group’s strategic marketing efforts, we procured 23 qualified offers to purchase the property and negotiated a large non-refundable deposit for the seller,” said McChesney. “With 23 offers for this property, it clearly demonstrates the high demand for well-located single-tenant fast-food investments.”
The Los Angeles Del Taco sale comes on the heels of some of McChesney’s other recent fast-food transactions including a Long John Silver/A&W combo property in Matton, IL and an Arby’s in Valparaiso, TN in April; and a Del Taco in Greenly, CO in February.
“With continued volatility in the stock and bond market, and a restrictive lending environment, more investors are looking to high quality retail properties,” said McChesney. “A single-tenant fast-food restaurant investment such as Del Taco provides long-term cash flow, with relatively low risk. As investors continue to look for security, we expect that the demand for these high quality retail assets will remain strong through 2016.”
About Hanley Investment Group
Hanley Investment Group Real Estate Advisors is a retail investment advisory firm with a $5 billion transaction track record nationwide, who works closely with individual investors, lending institutions, developers, and institutional property owners in every facet of the transaction to ensure that the highest value is achieved.
For more information, visit www.hanleyinvestmentgroup.com
Company Name: Hanley Investment Group Real Estate Advisors
Contact Person: Jeremy McChesney, Senior Vice President
Email: Send Email
City: Corona del Mar
Country: United States