A single-tenant retail property leased to Mor Furniture has changed hands in Merced in a transaction brokered by SRS Real Estate Partners. The property, located at 1720 W. Olive Ave., sold for $4.64 million. The freestanding building is fully occupied by Mor Furniture under a corporate-guaranteed triple-net lease, offering the buyer an income stream with operating expenses largely borne by the tenant.
SRS Real Estate Partners completed the sale on behalf of the seller, Wood Investments Companies, an investment group based in Southern California. SRS senior vice president Alexander Moore, together with Nick Frechou of Retail California, represented Wood Investments Companies in the disposition. The buyer is described as a private investor from Beverly Hills, indicating ongoing private-capital interest in net-lease retail assets in this market.
According to Moore, the offering gave investors access to a well-located, institutionally maintained retail asset backed by a corporate-guaranteed triple-net lease structure. He noted that the property’s position within a strong retail corridor, along with Merced’s sustained population growth and an expanding employment base, contributed to the asset’s appeal to investors evaluating risk-adjusted returns in the current environment.
The Mor Furniture building was constructed in 2010 and is situated on a 2.15-acre parcel. The store comprises approximately 21,710 square feet, making it a sizable showroom-format retail box within the surrounding shopping hub. The configuration aligns with Mor Furniture’s large-format retail model, with the single-tenant structure fully dedicated to the furniture user under the existing lease.
The property is part of a retail center anchored by a Lowe’s home improvement store, reinforcing its position within an established regional shopping node. Co-tenants in the center include Big 5, Dollar Tree, Ashley Furniture, Panda Express, and Del Taco, among others, creating a mix of soft goods, discount, home furnishings, and quick-service restaurant users that help sustain consistent traffic to the area.
Market fundamentals in Merced also supported the investment thesis for the buyer and seller. The city has experienced a 44% increase in population since 2000, alongside an expanding employment base. These dynamics provide a backdrop of demand growth for retailers and service providers in the trade area, supporting tenant performance and reinforcing the durability of income for well-located, institutionally maintained assets such as this Mor Furniture property.
