Stan Johnson Company Arranges Sale of Ohio Arby's Restaurant for $1.75 Million
Stan Johnson Company, one of commercial real estate’s leading investment sales brokerage firms, has completed the sale of a freestanding Arby’s restaurant for $1.75 million. The 6,960-square-foot single-tenant net lease property is located at 7690 Mentor Avenue in Mentor, Ohio. It was sold by a private investor from Pebble Beach, California who was represented by Susan Harris and Jeff McKinney of Stan Johnson Company. The buyer, a family trust from Irvine, California, was represented by Ronnie Givargis of Stan Johnson Company. The asset traded at a 6.67 percent cap rate, and this was a 1031 exchange property for both the buyer and seller.
“The seller had achieved her investment goals with the Arby’s property and made the decision to sell based on a combination of factors,” said Harris, Associate Director in Stan Johnson Company’s Sausalito, California office. “Primarily, the base term had dropped below 10 years, which is a gold standard for many net lease investors, and it was time to roll her investment into a property with a longer triple net lease. In addition, today’s strong market conditions and coming election year tipped the scales in favor of the final decision to exchange now.”
The property is located across from Great Lakes Mall, and in 2017, the Mentor City Council authorized the designation of Great Lakes Mall as a 97-acre community entertainment district, which is the first of its kind in Lake County, Ohio. The redesigned center will emerge as a viable and thriving mixed-use project focused on entertainment, retail, sporting, social and arts opportunities. Arby’s strategic location benefits from not only the local retail traffic, but from the nearby industrial and office parks, as well as the surrounding residential neighborhoods, helping to generate more than 35,000 vehicles per day. At the time of sale, there were approximately eight years left on the corporate guaranteed triple net lease.
About Stan Johnson Company:
Stan Johnson Company is one of the nation’s leading commercial real estate brokerage and advisory firms that focuses on investment sales transactions involving retail, office, industrial, healthcare, and specialty properties. The firm provides acquisition, disposition, sale leaseback, capital markets, and advisory services for institutions, developers, investment funds, corporate occupiers, and private investors across the United States. With a historic focus in the single-tenant net lease sector, Stan Johnson Company is now in its fourth decade of operation and has expanded its service platform in order to better serve its valued clients. The firm has completed more than $35 billion in transactions nationwide and continues to be regarded as the Net Lease Authority® as it focuses on continued growth and expansion into other industry sectors and services. To learn more about Stan Johnson Company, please visit: www.stanjohnsonco.com.