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.