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

California Mortgage Relief grant up to $80,000 to begin phasing out program

CALIFORNIA – The California Mortgage Relief Program, a grant up to $80,000 for pandemic-related...

CalHFA gives tips for 20% down payment program pre-registration opening next week

CALIFORNIA – The California Housing Finance Agency (CalHFA) published, March 27, tips on the...

Campaign sparks dialogue on underage tobacco sales in Apple Valley

https://www.youtube.com/watch?v=8VEoTQwkjME APPLE VALLEY – Flavored Swisher Sweets – a tobacco product banned in California,...

San Bernardino County Regional Parks awarding $1,000 to Trout Derby grand prize winner

SAN BERNARDINO COUNTY – The San Bernardino County Regional Parks is hosting a Trout...
Powered by Foreclosure.com

More like this

California Mortgage Relief grant up to $80,000 to begin phasing out program

CALIFORNIA – The California Mortgage Relief Program, a grant up to $80,000 for pandemic-related...

CalHFA gives tips for 20% down payment program pre-registration opening next week

CALIFORNIA – The California Housing Finance Agency (CalHFA) published, March 27, tips on the...

CalHFA announces new resources on Dream For All 20% down payment program

CALIFORNIA – The California Housing Finance Agency (CalHFA) announced, March 13, new resources available...