ARCO Ground Lease
Redding, CA
| Price | $3,889,000 |
| Cap Rate | 4.50% |
| NOI | $175,000 |
| Lease Term | 15 Years |
| Lease Type | Absolute NNN Ground Lease, with Tenant Responsible for All Taxes, Utilities, Insurance, and Maintenance, Including Roof, Structure, and Parking Lot |
| Rental Increases | 10% Rental Increases Every Five (5) Years |
| Year Built | 2018 (Under Construction) |
| Building Size | CALL FOR DETAILS |
| Lot Size | 1.16 Acres (50,530 SF) |
| Status | Available |
| Lead Broker Information | Ryan Forsyth Cushman & Wakefield 415.413.3005 ryan.forsyth@cushwake.com CA RE License #01716551 Vincent Aicale Cushman & Wakefield 415.690.5522 vince.aicale@cushwake.com CA RE License #01728696 Michael T. Yuras, CCIM Cushman & Wakefield 415.481.0788 michael.yuras@cushwake.com CA RE License #01823291 Scott Crowle Senior Director 415.604.4288 scott.crowle@cushwake.com CA RE License #01318288 Ken Noack, Jr. Senior Managing Director 916.569.2384 knoack@ngkf.com CA RE License #00777705 |
Investment Highlights
NEW 15-YEAR ABSOLUTE NNN GROUND LEASE WITH SCHEDULED RENTAL INCREASES
» New 15-year NNN ground lease with corporate guaranty from BP (NYSE: “BP”)
» 10% rental increases every five years, providing a hedge against inflation
» No landlord management, ideal for an out-of-area investor
HIGH-TRAFFIC LOCATION WITH IMMEDIATE FREEWAY ACCESS
» Located just off of the signalized intersection of Churn Creek Road and South Bonnyview Road, which has a combined traffic count of 47,120 vehicles per day
» Immediate access to Interstate 5, the main freeway through the region, with a traffic count of 60,000 vehicles per day
» Outparcel to shopping center with freeway-visible digital pylon signage
EXCELLENT LOCATION IN RAPIDLY GROWING SOUTH REDDING RETAIL MARKET
» Neighborhood is experiencing explosive growth, with more than 400,000 square feet of new retail space planned in the immediate area
» Outparcel to Churn Creek Marketplace, a 19-acre shopping center development anchored by a Save Mart grocery store and including additional restaurant and retail space
» Directly across from River Crossing Marketplace, a 25-acre retail development anchored by Costco
» Across from planned 232-acre gaming complex, featuring a 140,000 square foot casino, a 250-room hotel, an event and convention center, and an additional 25,000 square feet of retail space
» Ideally situated to capture the large, underserved population in the south Redding trade area
NEW 2018 CONSTRUCTION
» Built by tenant at tenant’s expense, demonstrating long-term commitment to the location
Property Description
The property is conveniently located just off of the signalized intersection of Churn Creek Road and South Bonnyview Road, which has a combined traffic count of 47,120 vehicles per day. The property enjoys immediate access to Interstate 5, the main freeway through the region, with a traffic count of 60,000 vehicles per day. The property is outparcel to Churn Creek Marketplace, a 19-acre shopping center development anchored by a Save Mart grocery store and including additional restaurant and retail space. Churn Creek Marketplace is directly across from River Crossing Marketplace, another retail development located on the other side of Interstate 5. The 25-acre development will be anchored by Costco, which is relocating from its other site in north Redding and expanding its square footage by 40%. Combined, Churn Creek Marketplace and River Crossing Marketplace will encompass 375,000 square feet of retail space. The shopping centers will change the landscape of south Redding and dramatically increase traffic on the Interstate 5/South Bonnyview Road interchange. Additionally, the Redding Rancheria plans to build a new casino immediately south of River Crossing Marketplace to replace the extremely profitable, but less strategically located, Win-River Casino. Located on a 232-acre site, the project would include a 140,000 square foot casino, a 250-room hotel, an event and convention center, and an additional 25,000 square feet of retail space, further solidifying the neighborhood as the new center of the Redding trade area.
