The property has a corporate backed 25-year lease with Home Depot.

SAN JOSE-Those who follow @GlobeStcom on Twitter and @GlobeStLIVE may have seen a post teasing the announcement, but GlobeSt.com has learned that Jereme Snyder and Eric Carlton of Colliers International has completed the sale of a single-tenant retail property NNN fee simple ground lease for $12 million. The seller is Phoenix-based Cole Capital. The buyer, HDSJ LLC, is a private investor based out of New York City.

The property, located at 635 W. Capitol Expressway in San Jose, “set a new national sales record for the big-box retailer-occupied property with an aggressively low closing cap rate of 4.68%,” according to Colliers. The NNN retail property market is forecasted to remain highly competitive in 2013, explains Snyder.

“We believe there may be room for further CAP rate compression for premier net lease assets,” he says. “Despite lower CAP rates, NNN assets occupied by strong credit-worthy tenants offer a comfortable premium over the five and 10 year Treasuries as well as other investment-grade investments.”

The 11.43-acre property has a corporate backed 25-year ground lease with Home Depot (22 years remaining) and 10% rental increases every five years, the property was held under exclusive bid invitation only, according to a prepared statement.

“There is robust demand for investment grade, single-tenant retail investments nationwide,” adds Snyder. “Factors such as scarcity of low-risk, well-located real estate, attractive low-cost financing sources and attractive returns are driving this demand.”