Apple Valley Bank of America net lease selling for $3.9 Million

Published on

Apple Valley Bank of America net lease selling for $3.9 Million
Photo credit: Coldwell Banker

APPLE VALLEY – The Jess Ranch Marketplace Bank of America net lease is available for purchase for $3.9 million. The absolute net lease agreement allows the owner to collect an annual $175,616 net operating income while Bank of America is responsible for all property related expenses including the rent, taxes, insurance, and building maintenance.

Bank of America

According to Statista Bank of America, ranked second largest after JP Morgan, has a market capitalization valued around $265.7 billion. The Federal Deposit Insurance Corporation (FDIC), a government corporation insuring depository banks up to $250,000, insures most banks in the country. However, the number of FDIC-insured commercial banks declined steadily since 2000.

The sale of the Bank of America, located at 19095 Bear Valley Rd, does not include the business – the acquisition is for an absolute triple net lease. 

Absolute Net Lease

Absolute net leases require no landlord responsibility for expenses, making them attractive to investors who desire a passive income stream. Other expense structures require the landlord to pay for some or all the building expenses. Absolute net leases require the tenant to pay these expenses directly.

RELATED: UPDATE – Local investor purchases net lease Hesperia Planet Fitness for $5.24M

According to the listing real estate company Coldwell Banker, the Bank of America lot size is 1.23 acres next to a Cinemark, 24 Hour Fitness, Target, WinCo Foods, and Best Buy. There are 10 years left on the 25 year lease agreement with five 5-year options to extend it. The new owner can increase the rent 12% every 5 years.

Apple Valley Bank of America net lease selling for $3.9 Million
Photo credit: Coldwell Banker

The cap rate for the investment is 4.5%.

A lower cap rate is generally associated with a safer or less-risky investment. A higher cap rate is associated with more risk. Many financial advisors feel that a high cap rate is better — a good cap rate is between 5% and 10%.

The listing agent says the bank completed interior renovations last year which shows their strong commitment to this location.

A typical commercial loan requires at least a 20% – 35% downpayment in order to qualify for the purchase of a property. 

For more information about the Bank of America net lease for sale visit https://www.loopnet.com/Listing/19095-Bear-Valley-Rd-Apple-Valley-CA/27796057/

spot_img

Latest articles

Aclima’s vehicles begin mapping air pollution in 64 underserved California communities

  CALIFORNIA – Acclima announced June 30 that its vehicles are now collecting block-by-block air...

Caltrans awards San Bernardino County $700,000 to boost biking, walking and transit options on state highways

SAN BERNARDINO COUNTY – Caltrans announced July 1, that it awarded $26.5 million in...

Free ride reimbursement in SoCal for July 4th

VICTORVILLE – Walter Clark Legal Group is sponsoring its Safe Ride Home Program during...

Two San Bernardino County men arrested and charged for violently stalking victims

CALIFORNIA – The Federal Bureau of Investigation (FBI) announced that two San Bernardino County...

More like this

Apple users have until this week to file a claim in $95 Million Siri class action settlement

CALIFORNIA – Siri-enabled Apple device users that experienced an unintended activation between September 17,...

Proposed law targeting cockfighting operations in CA advances to Senate

CALIFORNIA – AB 928 – the Cockfighting Cruelty Act, was sent to the Senate...

SCE customers can sign up for Safety Power Shutoff alerts and may qualify for $600 generator rebate

CALIFORNIA – Southern California Edison’s (SCE) online Wildfire Communications Center allows customers to sign...