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Fountain Valley McDonald’s Drive-Thru Trades in All-Cash 1031 Exchange
Hanley Investment Group Real Estate Advisors and Oaks Commercial Real Estate arranged the sale of a single-tenant property occupied by a McDonald’s Drive-Thru in Fountain Valley. The sale price was $3.85 million for the absolute triple-net ground lease at a 3.55% cap rate.
Hanley EVPs Bill Asher and Jeff Lefko, in association with Fred Encinas of Oaks Commercial Real Estate of Eastvale, represented the seller, a Newport Beach-based family trust. The buyer, an all-cash, 1031 exchange buyer based in Fountain Valley, was represented by Robert Tran of HPT Realty in Westminster.
“We generated multiple qualified offers at sub-4% cap pricing and secured a local all-cash, 1031 exchange buyer who resides minutes from the property,” Asher said. “With seven years remaining on an initial 20-year lease term, we achieved record pricing for a McDonald’s with 5% increases every five years and a shorter-term lease.”
Built in 2011 on 1.04 acres, the 3,500-square-foot McDonald’s is located at 11321 Talbert Ave., an outparcel adjacent to a Costco. According to Placer.ai data, it’s among the top-performing McDonald’s locations nationwide.
- ◦Sale/Acquisition