Two free-standing, single-tenant net-leased buildings in LA County were purchased by an overseas investor in a recent $12.5 mil transaction. The buildings, totaling 15.8k sf ($791/sf), are situated on a 1.52-acre land parcel in the city of Paramount.
The buildings, located at 8859 and 8819 Alondra Blvd, include a 14k sf CVS/pharmacy with a drive-thru and a 1.8k sf Starbucks, also with a drive-thru. Built in 2006, the buildings include monument signage and are located at a highly visible signalized intersection.
Nicholas Coo and Joseph Chichester with Faris Lee Investments represented the seller, a private family office based out of Southern California. The all-cash buyer was a private, overseas investor with an office in Arcadia, was repped by RE/MAX Premier Properties. We’re told that the cap rate of 4.68% is the lowest for two freestanding pads sold in Southern California in 2017.
“This type of property is hard to find in the Los Angeles area,” said Coo. “It offered newer construction in a dense infill location with two high-profile brand name tenants and no property management responsibilities.”
According to Chichester, both of the properties have just under 10 years on their primary lease terms, with limited rental growth until the option periods. However, both tenants are expected to exercise their renewal options as these stores are experiencing strong sales year-over-year.