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California  + Orange County  + Net Lease  | 

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.

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About Paul Bubny

Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 16-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 7-10 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces. Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications. Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).

  • ◦Sale/Acquisition