CBRE Group, Inc. announced the sale of a building occupied by an In-N-Out fast-food restaurant in Las Vegas, Nevada, for $3.7 million to MMY, LLC – a private Southern California investor. The sub 4.0% cap rate was the lowest long-term net-leased cap rate sold on record in the past 10 years.
CBRE’s Alex Kozakov, Patrick Wade, Eric Roy, and Matt Bear represented the seller, Great American Capital – A Los Angeles and Las Vegas based private development company. Kaji & Associates of Torrance, CA represented the buyer in this transaction.
The property, located at 9240 S. Eastern Avenue, is situated within a high-traffic retail corridor. The area has seen rental rate increases every 5 years of 12%, according to CBRE research. The building is approximately 3,500 square feet and adjacent to a 99 Cents Only store and several big box retailers.
In-N-Out Burger currently has 6 years on the remaining terms of their lease. The fast-food chain is a regional franchise with 310 locations primarily in the American Southwest and Pacific coast. The company was founded in 1948 and is headquartered in Irvine, California. In-N-Out has recently pushed beyond Southern California into Arizona, Nevada, Utah, Texas and recently Oregon.
The Las Vegas’ strengthening retail market reflected an improving local economy. The short-term forecast calls for positive growth in the Las Vegas retail market and economy. Through the end of 2016, demand for retail will continue to out-pace new supply resulting in positive absorption and continued decrease in vacancy, according to CBRE research.