Savills Studley Announces Sale of High-Profile Single-Tenant Asset
Los Angeles, CA (August 19, 2015)  

Savills Studley’s National Retail Services Group, headquartered in downtown LA, represented the seller of a single-tenant NNN asset located at 1590 Canyon Del Rey Boulevard in Seaside, California (Monterey County).

The 119,000-square-foot Home Depot was sold by New York Life Real Estate Investors to Hovercraft, LLC, a private real estate partnership. Home Depot assumed the lease in the early 2000s and immediately exercised all outstanding options, extending its term through 2032.

The purchase price was $16 million, with a cap rate in the three - four percent range, the lowest cap rate paid for a Home Depot nationally.

“The seller, who acquired the asset in the 1990s, took advantage of the significant demand for quality single-tenant NNN assets and also leveraged the favorable characteristics of the remaining lease term to generate more than 25 offers on the property,” stated Savills Studley’s Kyle Miller, who represented the seller along with colleague Bill Bauman.

This opportunity attracted considerable interest from local developers and investors, private high-net-worth individuals, east and west coast family offices, foreign investors and private real estate companies.

“The buyer viewed this as a generational opportunity to acquire a coastal asset in a very low growth and high-barrier-to-entry trade area,” added Bauman.

The asset parallels Highway 1 and has excellent freeway visibility. Other tenants in the center include Smart & Final, Staples and McDonalds.

About Savills Studley

Savills Studley is the leading commercial real estate services firm specializing in tenant representation. Founded in 1954, the firm pioneered the conflict-free business model of representing only tenants in their commercial real estate transactions. Today, supported by high quality market research and in-depth analysis, Savills Studley provides strategic real estate solutions to organizations across all industries. The firm’s comprehensive commercial real estate platform includes brokerage, project management, capital markets, consulting and corporate services. With 29 offices in the U.S. and Canada, and a heritage of innovation, Savills Studley is well known for tenacious client advocacy and exceptional service.

The firm is part of London-headquartered Savills plc, the premier global real estate service provider with over 30,000 professionals and over 700 locations around the world. Savills plc is listed on the London Stock Exchange (SVS.L).

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