Los Angeles, California, June 28, 2019 – Stan Johnson Company, one of the nation’s premier net lease brokerage firms, has completed the sale-leaseback of a six-property portfolio of Mobil-branded convenience and gasoline (C&G) retail sites in Los Angeles, California.
Matt Lipson, Chris Lomuto and Milo Spector, Associate Directors in Stan Johnson Company’s Portland, Oregon and Walnut Creek, California offices, exclusively represented the seller/operator in the transaction. Known as 1234 M Division Street, the seller/operator is a boutique carwash and C&G operator based in Southern California.
“Being a merger and acquisition-style sale-leaseback, this deal was bound to be complicated – and it did not disappoint,” said Lipson. “We were in escrow for nearly eight months, but everyone came out a winner, including buyers, sellers and tenant. The acquiring tenant found the lion’s share of their acquisition financing via sale-leaseback, and a highly sophisticated C&G real estate owner acquired six tremendously valuable properties with a long-term tenant in place.”
A New York-based institutional investor purchased the portfolio on June 17, 2019 for $24.5 million at a 7.25 percent cap rate.
“Between all the underwriting, multiple escrows, 750+ pages of legal documents, and several financing instruments, including a partial seller-carry, this was one of those deals that really blurs the line between real estate brokerage and investment banking,” said Lomuto. “So, we’re truly happy for all the parties that we were able to overcome all the challenges. It felt like we really climbed a mountain on this one. But best of all, we climbed that mountain together, as one cohesive deal team.”