Los Angeles – September 21, 2016 – CBRE Group, Inc. announced the sale of a building occupied by an In-N-Out fast-food restaurant in Las Vegas, Nevada, for $3.7 million to MMY, LLC - a private Southern California investor. The sub 4.0% cap rate was the lowest long-term net-leased cap rate sold on record in the past 10 years.
CBRE’s Alex Kozakov, Patrick Wade, Eric Roy, and Matt Bear represented the seller, Great American Capital – A Los Angeles and Las Vegas based private development company. Kaji & Associates of Torrance, CA represented the buyer in this transaction.
The property, located at 9240 S. Eastern Avenue, is situated within a high-traffic retail corridor. The area has seen rental rate increases every 5 years of 12%, according to CBRE research. The building is approximately 3,500 square feet and adjacent to a 99 Cents Only store and several big box retailers.
In-N-Out Burger currently has 6 years on the remaining terms of their lease. The fast-food chain is a regional franchise with 310 locations primarily in the American Southwest and Pacific coast. The company was founded in 1948 and is headquartered in Irvine, California. In-N-Out has recently pushed beyond Southern California into Arizona, Nevada, Utah, Texas and recently Oregon.
The Las Vegas’ strengthening retail market reflected an improving local
economy. The short-term forecast calls for positive growth in the Las Vegas
retail market and economy. Through the end of 2016, demand for retail will
continue to out-pace new supply resulting in positive absorption and continued
decrease in vacancy, according to CBRE research.
About CBRE
Group, Inc.
CBRE
Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in
Los Angeles, is the world’s largest commercial real estate services and
investment firm (based on 2015 revenue).
The Company has more than 70,000 employees (excluding affiliates), and
serves real estate investors and occupiers through more than 400 offices
(excluding affiliates) worldwide. CBRE
offers a broad range of integrated services, including facilities, transaction
and project management; property management; investment management; appraisal
and valuation; property leasing; strategic consulting; property sales; mortgage
services and development services.
Please visit our website at www.cbre.com.
