FOUNTAIN VALLEY, Calif. – Hanley Investment Group Real Estate Advisors, a nationally known real estate brokerage and consulting firm specializing in retail real estate sales, in collaboration with Oaks Commercial Real Estate, announced today that the two firms have arranged the sale of a single-tenant property housing a McDonald's drive-thru in Fountain Valley, Calif. The sale price is $3.85 million on an absolute triple-net ground lease, representing a cap rate of 3.55%.
Hanley Investment Group executive vice presidents Bill Asher and Jeff Refko, along with Fred Encinas of Oaks Commercial Real Estate in Eastvale, Calif., represented the seller, a family trust based in Newport Beach, Calif. The buyer, an all-cash 1031 exchange purchaser based in Fountain Valley, was represented by Robert Tran of HPT Realty in Westminster, Calif.
“We placed multiple qualified offers at a sub-4% cap price and secured a local, all-cash 1031 exchange buyer who lives minutes from the property,” Usher said. “With seven years remaining on the original 20-year lease, we were able to achieve a record price for McDonald's with a 5% increase every five years and a shorter lease term.”
Built in 2011 on a 1.04-acre site, the 3,500 square foot McDonald's is located at 11321 Talbert Avenue, a separate parcel adjacent to a top-performing Costco. The property benefits from proximity to the signalized, sharply curving intersection of Talbert Avenue and New Hope Street, which averages more than 45,000 vehicles per day. The store is conveniently located less than a half-mile north of the on/off ramps for Interstate 405, one of the nation's busiest roadways, with an average of 320,000 vehicles per day.
“The recent interior renovation of the store reinforces McDonald's continued commitment to this location,” Encinas said. “The combination of below-market long-term stabilized rent, recent renovations and a prime location at the shopping center's signalized entrance made this property very attractive to a buyer.”
The subject property is one of the top performing McDonald's locations in the nation (according to Placer.ai) and is strategically located as an outbuilding in a shopping center anchored by a Costco, which is in the top 10% of top performing Costco locations in the nation (according to Placer.ai). Other top performing national/credit tenants in the shopping center include PetSmart (top 1% nationally), Ross Dress for Less (top 30% nationally), Taco Bell (top 30% nationally) and Starbucks, according to Placer.ai, fostering crossover synergies within the center, Asher reports.
Headquartered in Chicago, McDonald's (NYSE: MCD, S&P: BBB+) is a leading global foodservice retailer with more than 40,000 restaurants in more than 100 countries. Approximately 95% of McDonald's restaurants worldwide are owned and operated by independent, local business owners. McDonald's released its latest quarterly earnings data on April 30, 2024. The company's quarterly revenue was $6.17 billion, up 4.6% year over year. McDonald's U.S. same-store sales increased 2.5%.
The Fountain Valley market in Orange County is a dense infill trade area with very high barriers to entry: the five-mile trade area is home to over 686,000 residents and 330,755 employees, with a median household income within a one-mile radius of $135,000.
“Investors looking for stable income often turn to single-tenant triple-net properties leased to high-credit tenants such as McDonald's. These assets offer a combination of steady income and minimal management responsibility, especially when home to nationally recognized brands with long-term leases. Despite market volatility, such investments provide a flight to quality properties in uncertain times and will continue to be the type of single-tenant retail investment that trades more frequently in today's market,” Asher said.
About Oaks Commercial Real Estate
Fred Encinas has been involved in retail real estate at both the corporate and brokerage levels for over 45 years, representing some of the industry's top companies. He began his career as a Facilities Engineering Assistant for Market Basket, a division of The Kroger Company. His hard work led him to management positions at Chief Auto Parts, Round Table Pizza, McDonald's, In-N-Out Burger and EZ Lube. He also served as Senior Vice President at NAI Capital, Inc. Currently, Fred is a broker and owner of Oaks Commercial Real Estate. He represents many retail food clients in Southern California and continues to grow his client base throughout the Los Angeles, Orange County and Inland Empire markets. Visit www.oakscre.com. [https://www.oakscre.com/].
About Hanley Investment Group
Hanley Investment Group Real Estate Advisors is a real estate brokerage and advisory services firm with over $11 billion in transaction volume, specializing in the sale of retail properties nationwide. Our expertise, track record, and unwavering commitment to putting our clients' needs first set us apart in the industry. Hanley Investment Group leverages property-specific marketing strategies, cutting-edge technology, and local market knowledge to deliver superior results and create value. Our nationwide relationships with investors, developers, institutions, franchisees, brokers, and 1031 exchange buyers are unmatched in the industry, resulting in maximum exposure and pricing for each property. Hanley Investment Group has redefined the retail investment property selling experience with unparalleled service. For more information, please visit www.hanleyinvestment.com. [http://www.hanleyinvestment.com/].
Media Contact
Company Name: Hanley Investment Group Real Estate Advisors
Contact: Bill Usher, Executive Vice President
Email: Send an email [https://www.abnewswire.com/email_contact_us.php?pr=hanley-investment-group-and-oaks-commercial-real-estate-arrange-sale-of-singletenant-mcdonalds-drivethru-on-costco-outparcel-in-orange-county-calif-for-385-million]
Phone: 949.585.7684
Address: 3500 East Coast Highway, Suite 100
City: Corona del Mar
State: California
Country: United States
Website: https://hanleyinvestmentgroup.com/
This release was published on openPR.