August 17, 2016
Orange County-based The Beacon Group, Inc., sold a single-tenant net-leased coastal property in Redondo Beach, CA, occupied by Petco, to an undisclosed private Los Angeles company for $7.6-million. The sale represents a cap rate of 4.5%, a record low for a single-tenant Petco in LA County.
Built in 1981, the 17,160-square-foot building sits on a 1.07-acre parcel at 537 N. Pacific Coast Highway in King Harbor Plaza, and is shadow anchored by Smart & Final. Petco has occupied the building for 22 years, and recently signed a 10-year lease extension.
Hanley Investment Group Real Estate Advisors’ Ed Hanley and Bill Asher, along with Voit Real Estate Services’ Joe Miller, handled the 1031 exchange transaction.
Asher says investors’ “flight to security for stabilized single-tenant net-lease properties in major metro markets” is resulting in “high demand” and “record pricing.”
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