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, 2020 – JLL 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.