Last Updated on February 18, 2023 by The HD Post Staff
HESPERIA – A triple net (NNN) lease Stater Bros, located at 16904 Main St in Hesperia, is selling for $13.9 Million, with 17.5 years remaining on the lease term. Financial statements reveal an investment in the property will generate a yearly income of $523,782.
According to the real estate listing agency CBRE, few single-tenant net leased (STNL) grocer assets come to market in Southern California, let alone with 17.5 years of remaining lease term, making this Stater Bros. an “extremely rare and compelling investment opportunity”.
The triple net lease structure is an agreement where the tenant, Stater Bros in this case, promises to pay all the expenses of the property, including real estate taxes, building insurance, and maintenance. These expenses are in addition to the cost of rent and utilities. This lease structure limits responsibility for the landlord.
Stater Bros. was founded in 1936 and currently operates 170+ stores across Southern California with annual revenue in excess of $5 Billion. Forbes lists it among America’s 100 Largest Private Companies.
According to Placer.ai data, the Hesperia location receives an average of 1.2 million visits per year, ranking it as the #1 Stater Bros. in the local trade area, and the #2 store in the chain by foot traffic.
Hesperia is also considered to be a rapidly growing area.
The population within a 5-mile radius of the store. is projected to grow by 3.4% over the next 5 years. The average home values in Hesperia have risen by 27% in the past year alone.
A 5% rent increase is due in 2024 with additional rent increase every 5 years after that. The property has a 3.75% cap rate. A lower cap rate is generally associated with a safer or less-risky investment, while a higher cap rate will be associated with more risk. Many advisors feel that a high cap rate is better, or that a good cap rate is between 5% and 10%.
The retail property has been on the market since April 13, 2022.
For more information about the listing visit https://www.loopnet.com/Listing/16904-Main-St-Hesperia-CA/25466569/
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