New single-tenant quick service restaurant building in Fullerton sells for $6.2M


New single-tenant quick service restaurant building in Fullerton sells for $6.2M

JLL Capital Markets closed the sale of the property that is triple net leased to Starbucks

NEWPORT BEACH, Calif., MM DD, 2020JLL Capital Markets announced today that it has closed the $6.2 million sale of a 3,000-square-foot, single-tenant retail building triple net leased to Starbucks in Fullerton, California.

JLL marketed the property on behalf of the property developer, Calbay Development, LLC, a retail development company based out of Manhattan Beach, California. A private, high-net-worth buyer based in Los Angeles purchased the asset for $2,067 per square foot. At 3.63%, this sale represented one of the lowest cap rates to trade for a Starbucks in the country this year.

Constructed in 2020, the property has a fully entitled drive-through and is occupied by investment-grade tenant Starbucks Corporation (NASDAQ: SBUX), which is the world’s largest coffee house chain and has more than 30,000 locations in 70 countries. Starbucks recently signed a rare, 20-year, absolute, triple-net ground lease with no termination rights, showing its commitment to the property.

Situated on 0.92 acres at 1101 S. Harbor Blvd., the building occupies a prime corner location with high visibility to more than 75,700 vehicles per day. The building is near downtown Fullerton within a major retail corridor with direct access to the 91 Freeway and across South Harbor Boulevard from a Costco-anchored neighborhood shopping center. Additionally, the property is in a dense, infill location surrounded by a population of more than 615,000 residents within a five-mile radius.

The JLL Retail Capital Markets team representing the seller was led by Director Adam Friedlander in conjunction with Ron Duong of Marcus & Millichap.

“This Starbucks was one of the most attractive single-tenant, net-lease investment offerings that was on the market in Orange County this year, as drive-thru entitlements in Orange County are rare and take a considerable amount of time to achieve,” Friedlander said.

JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm’s in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment sales advisory, debt placement, equity placement or a recapitalization. The firm has more than 3,700 Capital Markets specialists worldwide with offices in nearly 50 countries.