Property

Grocery Outlet at Breakwater Town Center

Location

881 Palm Ave
Imperial Beach

Brochure

Description

For Sale
A Single-Tenant Investment Opportunity

The Opportunity

HFF, as exclusive advisor, is pleased to offer the extraordinary opportunity to purchase the fee simple interest in Grocery Outlet (the “Property”), located in Imperial Beach, a highly desirable seaside community of San Diego County. The anchor of the brand new, Breakwater Town Center, the Property was completed in 2017. Grocery Outlet signed a 15-year NNN lease, which feature 10.5% rent increases every five years with three five-year options. Breakwater Town Center is a 31,934 SF open-air neighborhood center that features a coastal aesthetic perfectly suited for its location at the gateway of Imperial Beach and Coronado Island. The center’s tenant roster features national brands such as Starbucks, Chipotle, Five Guys, Jersey Mikes, and T-Mobile. Additionally, the center will be home to a future four-story hotel, which will break ground soon.

Investment Highlights

NEW NNN LEASE TO A LEADING DISCOUNT GROCERY BRAND
Grocery Outlet, a leading national discount grocer, was established in 1946 and now operates over 230 locations in California, Idaho, Oregon, Pennsylvania and Washington. The privately held company achieved approximately $2 billion in annual revenue in 2017.

FAVORABLE LEASE WITH ATTRACTIVE FIXED RENTAL INCREASES
Grocery Outlet signed a brand new, 15-year NNN lease with three 5-year options. The lease features attractive 10.5% rent escalations every five years.

BRAND NEW, MIXED USE SHOPPING CENTER, HIGH QUALITY CONSTRUCTION
The retail component of Breakwater Town Center was completed in 2017 with the highest quality construction. Its beach-centric aesthetic matches its picturesque coastal setting. The center features an open-air, pedestrian-friendly layout with iconic architectural touches such as a lifeguard tower and murals of ocean scenes. Additionally, the center will soon be home to a four-story hotel.

INFILL, HIGH-TRAFFIC LOCATION IN PROXIMITY TO THE CALIFORNIA COAST
Only one mile east of the Pacific Coast, the Property is strategically located at a signalized intersection with traffic counts exceeding 42,000 cars per day. This is a high-barrier entry market with almost no developable land.

NAVAL BASE CURRENTLY UNDER CONSTRUCTION WITHIN ONE MILE OF THE PROPERTY
Naval Base Coronado has begun a $1 billion SEAL training center located within blocks of Grocery Outlet. The 600-acre campus will add 1.5 million square feet of buildings to the base, which includes spaces for SEAL Teams, logistical support buildings, training facilities and classrooms. 3,300 personnel will be moved to the base by completion, adding significant daytime traffic for Grocery Outlet.

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