Newport Beach, CA – SRS Real Estate Partners’ National Net Lease Group (NNLG) announced today it has completed the $6.875 million record-breaking sale of a 34,199-square-foot single-tenant retail property occupied by Superior Grocers, an independent supermarket chain with more than 47 Southern California locations. At 4.92%, the sale breaks the record for the lowest reported cap rate for a single-tenant grocery/supermarket property sold in California this year.
SRS NNLG’s Managing Principals Matthew Mousavi and Patrick Luther represented the seller, a partnership from Southern California, as well as the buyer, a Southern California-based private non-1031 investor.
Built in 1996 and situated on 1.72 acres, the property is located at 6931 La Palma Avenue in Buena Park, CA. There are seven years remaining on its corporate-guaranteed triple net lease.
“This transaction garnered a significant amount of investor interest and offers as the asset is in a prime, dense, and irreplaceable north Orange County location,” said Luther. “Grocery store assets continue to be targets for investors as they provide essential goods for the local community.”
The property is situated on the corner of La Palma Avenue and Knott Avenue and is walking distance to Knotts Berry Farm. It is also near the 91 Freeway and is within a dense retail corridor. Additionally, there are more than 626,000 residents and more than 227,000 employees within a five-mile radius of the property.
“Despite the low, sub 5% cap rate and the current high interest rate environment, we received a very strong response from the market for this property, with offers received from a wide range of non-1031 investor profiles. Well-located, necessity-based use retail like this in Orange County and other Southern California markets is still in strong demand,” said Mousavi.
In 2022, SRS’ Investment Properties Group (IPG) and National Net Lease Group (NNLG) completed more than $2.8 billion in deal volume comprising 705 transactions in 49 states. SRS currently has in excess of 550 properties actively on the market with a market value surpassing $2.8 billion.
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 2022, the group completed more than 705 sales across 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.
