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.