Newport Beach, CA – SRS Real Estate Partners’ National Net Lease Group (NNLG) has completed the $8.15 million sale of a 17,000-square-foot single-tenant property occupied by Planet Fitness located at 9420 Scranton Road in San Diego, CA. At a 4.90% cap rate, the sale broke a national record for the lowest ever cap rate for a Planet Fitness-occupied property, per CoStar.
SRS NNLG’s Managing Principals Matthew Mousavi and Patrick Luther represented the seller, a Southern California-based retail property owner and operator, and the buyer, a Southern California-based family partnership, who paid all-cash.
“At the entrance of the Sorrento Mesa hub, this asset offers the new ownership a prime San Diego infill location just two miles from UCSD and adjacent to Sorrento Towers which is a direct customer base for Planet Fitness to draw from,” said Mousavi. “The demand from investors and tenants for fitness property is back, and this high-profile, record-breaking low cap rate sale is testament to that. We received a tremendous amount of interest and several offers.”
Built in 1986 and renovated in 2020, the property sits on 1.74 acres at the intersection of Mira Mesa Boulevard and Scranton Road and near the 805 freeway. There are more than 239,000 residents and 287,000 employees within five miles of the property.
In 2021, SRS’ Investment Properties Group (IPG) and National Net Lease Group (NNLG) completed more than $3.1 billion in deal volume comprised of 899 transactions in 49 states, and currently has more than $2 billion in property on the market, with more than 465 properties sold year-to-date in 2022.
About SRS Real Estate Partners
Founded in 1986, SRS Real Estate Partners is building upon its retail foundation to provide extensive commercial real estate solutions to tenants, owners, and investors. Headquartered in Dallas, with more than 25 offices in the U.S., SRS has grown into one of the industry’s most influential and respected leaders. Our commitment to excellence is strengthened by our Guarantee of Value and our success is measured in the achievement of our clients’ objectives, satisfaction, and trust.
SRS’ Investment Properties Group (IPG) & National Net Lease Group (NNLG) is a unified platform of seasoned net lease professionals located and transacting nationally with all underwriting and marketing efforts strategically located in Southern California. In 2021, the group completed more than 899 sales across more than 49 states and has over 160 brokerage professionals nationally. From proactive sales to targeted acquisitions and tailored debt and equity solutions, SRS’ National Net Lease Group offers comprehensive services to net lease owners and investors. Superior speed-to-market, world-class marketing materials, a deep investor database and unparalleled retail submarket intelligence from the entire SRS platform allow SRS’ National Net Lease Group to deliver the best possible returns.