Single-Tenant Pilot Flying J Sale Sets Pricing Records

RealSource Group completed the sale of a single-tenant property occupied by Pilot Flying J Travel Center in Jurupa Valley. At $14 million, the sale reportedly set new records nationwide for both the highest sales price and price per square for a Pilot ground lease. Additionally, the closing cap rate of 4.90% establishes an all-time low for a Pilot ground lease outside Texas.

Austin Blodgett, RealSource SVP of investment sales, and associate Jonathan Schiffer represented the seller, Greens Group, based in Irvine. Blodgett and Schiffer also represented the buyer, a private investor also located in Irvine.

“This sale represents a notable milestone, setting nationwide benchmarks for a Pilot ground lease,” said Blodgett. “The acquisition also marked the buyer’s first net-lease purchase. The buyer was particularly drawn to the property’s underlying real estate value and the unique security offered by the Pilot brand, now wholly owned by Berkshire Hathaway  under the leadership of Warren Buffett, further bolstering the buyer’s confidence in the investment.”

The tenant’s absolute triple-net ground lease relieves the buyer of landlord responsibilities. “Pilot Flying J has more than 14 years remaining on the initial lease term with four five-year options and 10% rental increases every five years,” Blodgett said.