Record Low Cap Rate for a Single-Tenant Drug Store in the Antelope Valley
ROSAMOND, Calif. –- (RealEstateRama) — Hanley Investment Group Real Estate Advisors, a nationally-recognized real estate brokerage and advisory firm specializing in retail property sales, arranged the sale of a new single-tenant net-lease Rite Aid property located at 2938 Rosamond Boulevard in the City of Rosamond, north of Lancaster/Palmdale, in Southern California’s Antelope Valley. The purchase price was $7,604,000.
Hanley Investment Group Executive Vice President Bill Asher represented the seller, a private partnership based in Texas. The buyer, Newmar, LLC from Newport Beach, Calif., was represented by Jim Halferty of Lee & Associates based in Commerce, Calif.
Completed in 2016, the new 17,277-square-foot freestanding building with a drive-thru pharmacy is situated on a 2.23-acre parcel of land at the signalized intersection of 30th Street and Rosamond Boulevard in Rosamond. Rite Aid has a new 20-year absolute NNN corporate-guaranteed lease with six five-year renewal options.
Located in Kern County, the City of Rosamond is the closest city to Edwards Air Force Base, the second largest base in the Air Force spanning across 481 square miles with more than 10,000 military, federal civilian and contract personnel, Asher reports. “The property also benefits from traffic flow to residential communities to the south and its close proximity to the high school and public library. Regional and national credit tenants in the area include Albertsons, AutoZone, Dollar General, Jack in the Box, McDonald’s, Pizza Hut, Subway and Taco Bell,” Asher said.
Investors are seeking long-term cash flow, with relatively low risk and little to no maintenance, reports Asher. “As investors look for security, we expect that the demand for high-quality retail assets will remain strong through 2017,” Asher said.