CBRE Announced Sale of 61,000 Sq. Ft. Retail Property in Sacramento County, Calif.

Deal in Carmichael drew multiple offers from Southern California investors looking for higher yield in inland markets

CBRE announced the sale of a 61,043 square-foot triple-net retail property in Carmichael, Calif. to a private partnership for $11 million.

CBRE’s Alex Kozakov, Patrick Wade and team represented the seller -- 99 Palms, LLC – a private entity managed by San Diego-based Midtown National Group. The buying partnership -- Diamond Developers, LLC, a Southern California-based group of private investors – was represented by an outside broker.

The Carmichael Center, located at 7223, 7225 & 7241 Fair Oaks Boulevard, is a three-tenant, grocery-anchored shopping center, which also includes a Big Lots! discount tenant and a national bank branch. Big Lots has successfully operated at the center for more than 20 years and grocer Smart & Final recently signed a 15-year lease. The property sits on a corner lot with high traffic and frontage within strong retail demographics.

“With corporate guarantees from three national credit tenants that have proven resistance from the e-commerce impact, we received significant offer activity,” said Kozakov. “The buyer pool was primarily made up of Southern California private investors looking to achieve a higher yield in the Carmichael submarket versus the more aggressive cap rates in the coastal California areas.”

U.S. net-lease investment in 2019 is on pace to surpass last year’s record level, with an increasing number of investors attracted to this asset class by the prospect for strong risk-adjusted returns, according to the latest research from CBRE. Net-lease investment increased by 30.2 percent year-over-year to $20.9 billion in Q3 2019, the third-highest quarterly total on record.