A 58,403 square-foot retail asset occupied by grocery tenant Smart & Final has recently been placed on the market in Palmdale. The property, which has been listed by Marcus & Millichap, is being offered at $25.58 million, or about $438 per square foot.
Located at 5038 W Avenue North, public records show that the property is currently owned by Dallas-based Spirit Realty, which acquired it in 2015 for $13.6 million.
Its tenant is a Los Angeles-based grocery retailer, with more than 254 locations. The company, which has been in business for more than 150 years, was recently bought out by Apollo Global Management in 2019 for $1.12 billion. In 2021, the company generated revenue of about $4.1 billion and currently has over 11,000 employees.
Smart & Final is currently at the property on a 20-year lease, with 13 years remaining. The lease has two percent annual increases built in as well as two ten-year renewals. Currently annual rent at the property reaches just over $1.2 million.
The Smart & Final property is situated at the intersection of West Avenue North and 50th Street West, which sees an average daily traffic count of more than 12,300 vehicles per day. Surrounded primarily by retail, the area is also home to a number of national retailers, including Walmart, McDonald’s, Starbucks, Panda Express, Cold Stone Creamery, AutoZone and Walgreens.
The area is also home to strong demographics, with more than 47,900 individuals residing within a three-mile radius of the property and almost 101,600 individuals within a five-mile radius. Additionally, the average household income within a one-mile radius is over $140,000.
