VICTORVILLE – Grocery Outlet and dd’s Discount triple net lease is selling for $6.6 Million. According to CBRE, the two-tenant retail investment located at 12220 Hesperia Rd. in Victorville, would generate a $333,950 yearly income.
The triple net lease structure is an agreement where the tenants, Grocery Outlet and dd’s Discounts 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.
Grocery Outlet is an extreme value retailer of name-brand and fresh products sold through a network of more than 420 independently operated stores in California, Washington, Oregon, Pennsylvania, Idaho, Nevada and New Jersey.
For the second quarter ending July 2, Grocery Outlet Holding Corp. net sales surged nationally 15.7% to $897.7 million from $775.5 million a year earlier. The Victorville location has a 10 year lease term that will generate $204,672 annually in rental income.
dd’s DISCOUNTS has operated at this location since 2011 and has nearly 5 years of term remaining. It is a subsidiary of Ross Stores that has a revenue that exceeds $18.73 billion and operates 1,648 stores. The Victorville store generates $155,025 in annual rental income.
Rental increases over the course of the term are expected to bring in an additional $83,400.
The properties have a 5% 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 properties have been on the market since July 29, 2022.
About CBRE
CBRE is a commercial real estate services and investment firm. The abbreviation CBRE stands for Coldwell Banker Richard Ellis. It is the world’s largest commercial real estate services and investment firm.
For more information about the listing visit https://www.loopnet.com/Listing/12220-Hesperia-Rd-Victorville-CA/26288378/
