Jeff Lefko Lefko: “The overall price point appealed to a large buyer pool including multiple 1031-exchange buyers who pursued the investment at a sub-4% cap rate, with the eventual buyer closing at record pricing.”

IRVINE, CA—Cap rates for Starbucks stores are decreasing significantly, reflective of this store’s real estate fundamentals and award-winning, redeveloped design, Hanley Investment Group Real Estate Advisors associate Jeff Lefko tells exclusively.  Lefko was the main broker responsible for completing the sale of a new construction single-tenant Starbucks with a drive-thru located at 625 E. Redlands Blvd. in Redlands, CA. The purchase price of $2.6 million represented a cap rate of 3.76% which, according to CoStar, achieved multiple records: one of the lowest cap rates nationwide for a single-tenant Starbucks and the lowest cap rate for a fee-simple Starbucks in Southern California.

Lefko and HIG EVP Bill Asher, in association with Tricia Kim of Citi Property Services Inc. of Santa Clarita, CA, represented the seller, Pacific American Development LLC of Newport Beach, CA. The buyer, a private investor based in California, was represented by real estate broker Karl Duistermars, based in La Crescenta, CA.

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Carrie Rossenfeld

Carrie Rossenfeld is a reporter for the San Diego and Orange County markets on and a contributor to Real Estate Forum. She was a trade-magazine and newsletter editor in New York City before moving to Southern California to become a freelance writer and editor for magazines, books and websites. Rossenfeld has written extensively on topics including commercial real estate, running a medical practice, intellectual-property licensing and giftware. She has edited books about profiting from real estate and has ghostwritten a book about starting a home-based business.

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