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2425 Wilshire Boulevard
Santa Monica, CA 90403

Price: $6,100,000 Tenant: Del Taco
Bldg SF: 3,260 SF Price/SF: $1,871
Land SF: 8,816 SF CAP Rate: 3.48%
Click to View Offering MemorandumClick to Print Offering Memorandum

Exclusively Listed by:
Brandon Michaels
(818) 212-2794
bmichaels@marcusmillichap.com
License # 01434685


Matthew Luchs
(818) 212-2727
matthew.luchs@marcusmillichap.com
License # 01948233


Steven Schechter
(818) 212-2793
Steven.schechter@marcusmillichap.com
License # 01089464

Price: $6,100,000
Bldg SF: 3,260 SF
Land SF: 8,816 SF
CAP Rate: 3.48%
Price/SF: $1,871
Click to View Offering MemorandumClick to Print Offering Memorandum

Exclusively Listed by:
Brandon Michaels
(818) 212-2794
bmichaels@marcusmillichap.com
License # 01434685


Matthew Luchs
(818) 212-2727
matthew.luchs@marcusmillichap.com
License # 01948233


Steven Schechter
(818) 212-2793
Steven.schechter@marcusmillichap.com
License # 01089464

Investment Highlights

Generational Purchase Opportunity of a Trophy Net Leased Ground Lease

 

  • Eighteen years remaining on a ground lease corporately guaranteed by Del Taco
  • Purchase of the underlying land only
  • The building reverts to the landowner upon the expiration of the ground lease
  • Trophy net leased asset with zero management responsibility
  • Irreplaceable Santa Monica, CA location on the northwest corner of Wilshire Boulevard and Chelsea Avenue
  • 3,260 square foot drive-thru building located on 8,816 square feet of land
  • The property features a drive-thru with excellent ingress and egress and access from both Wilshire Boulevard and Chelsea Avenue

 

Irreplaceable Location in World-Renowned Santa Monica, CA

 

  • Ideally located one mile from Montana Avenue and two miles from the 3rd Street Promenade in Santa Monica, CA
  • Located directly across the street from popular Douglas Park
  • The location boasts average daily traffic counts of 44,946 vehicles per day
  • The property features 80 feet of frontage on Wilshire Boulevard and 110 feet of frontage on Chelsea Avenue

 

Trophy Single Tenant Net Leased Opportunity

 

  • Fully leased to Del Taco on an absolute triple net basis
  • Eighteen years remaining on the initial lease term with four – 5 year options
  • Rent increases every five years
  • Del Taco is a quick service restaurant serving American-style Mexican cuisine with 596 locations around the country
  • Del Taco is traded on the NASDAQ as TACO, and is considered the second largest Mexican quick service restaurant, serving more than three million guests each week
  • In quarter two of 2021, system-wide comparable restaurant sales increased 17.8% compared to the prior-year fiscal quarter
  • Additionally, income from operations growth compared to last year was substantial at 148.5%

 

Dense Immediate Sub-market with Affluent Underlying Demographics

 

  • There are 34,747 people located within one mile of the property, 240,479 people located within three miles of the property, and 474,684 people located within five miles of the property
  • There are 17,075 households located within one mile of the property, 116,219 households within three miles of the property, and 219,126 within five miles of the property
  • Average household income is $135,340 within one mile of the property, $136,338 within three miles of the property, and $137,156 within five miles of the property