Hanley Investment Group Real Estate Advisors and Oaks Commercial Real Estate have successfully arranged the sale of a single-tenant property in Fountain Valley. The property, which is occupied by a McDonald’s Drive-Thru, sold for $3.85 million at an impressive 3.55% cap rate.
The seller was represented by Hanley Executive Vice Presidents Bill Asher and Jeff Lefko, along with Fred Encinas from Oaks Commercial Real Estate of Eastvale. On the other hand, the buyer was represented by Robert Tran from HPT Realty in Westminster.
According to Asher, they received multiple offers at sub-4% cap pricing but ultimately secured an all-cash buyer who was looking for a 1031 exchange opportunity close to their residence. With seven years still remaining on the initial lease term (which spans over 20 years), this deal achieved record pricing for a McDonald’s location with regular rent increases every five years.
Built in 2011 on a spacious lot measuring over one acre (specifically at 11321 Talbert Ave.), this particular McDonald’s Drive-Thru boasts approximately 3,500 square feet of space and is situated next to Costco as an outparcel location. In fact according to Placer.ai data analysis it ranks among some of the top-performing locations nationwide within its franchise network.
This successful transaction serves as yet another example that highlights how lucrative investing opportunities can be found even during challenging times like these when commercial real estate markets are facing unprecedented challenges due to COVID-19 pandemic related disruptions across various sectors such as retail or hospitality industries – just name few examples!
