Sands Investment Group is pleased to announce that they’ve closed escrow on their first two net lease properties of 2019. The investment group advised and provided financing for the buyers of two highly coveted Bay Area properties — Claremont University Village and San Jose In-N-Out. Both properties closed at record low cap rates (3.2% and 4.75%, respectively) and sold for at or above list price, which is a rarity in the California net lease market.
The San Jose In-N-Out, located south of the 101 Freeway on the corner of Great Oaks Parkway and Cottle Road, between big box retailers Target and Lowe’s, is an especially rare buy in the net lease market. This In-N-Out location is currently under construction, and is expected to open in Q1 of 2019.
“In-N-Out is a very rare net lease commodity to be able to acquire. Of all 350 current existing In-N-Out Burger locations, roughly 1 in every 20 consists of a ground lease. This along with the companies outstanding operating financials makes for In-N-Out highly sought after when on a rare occasion one is available for acquisition. The combination of In-N-Out’s financials along with the consistent value of San Jose real estate will ensure a long term, stable investment regardless of market fluctuations or unforseen recessions,” says Andy Chana, Advisor of Capital Markets with Sands Investment Group.
Claremont University Village is in direct proximity to Claremont College and has had practically no tenant turnover since it was built in 1997. “Claremont set a record benchmark cap rate in the shopping center market for the entire Inland Empire,” says Chana, “but the opportunity in this property still generated a bidding war among buyers. This is the best corner you could have a retail center on in all of Claremont.”
Chana represented the buyer in the In-N-Out transaction, and the seller in the Claremont University Village transaction. Despite record low cap rates on both properties, each property presented unique opportunity investments that Chana was able to demonstrate to buyers.
Thanks to his extensive connections with buyers and sellers in the Sands Investment Group network, Chana was able to identity the right buyers for both Claremont University Village and San Jose In-N-Out. “We represent a magnitude of clients, on both the buying and selling side, with outstanding cap results in the marketplace,” says Chana.
About Sands Investment Group: Sands Investment Group is a commercial real estate brokerage firm that specializes in the buying and selling of net lease properties for private investors and institutions across the United States. Since its founding in 2010, SIG has closed over 1,700 transactions worth more than $4 billion in 48 states. Advisors with the company currently have over $600 million in active inventory. As a leader in the industry, SIG was first to offer true sub-product type specialization. The firm’s experience in net lease, retail, office and industrial transactions is unparalleled. Sands Investment Group has offices in Charleston, SC, Santa Monica, CA Atlanta, GA, and Austin, TX. Learn more at www.signnn.com.