1031-Exchange Investors are Shifting Focus
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Philbin: “We were blown away by the amount of activity and the number of offers received at or near the asking price.”
SAN DIEGO—In an age where tenants come and go, certain factors now matter more to investors than brand-name recognition, Stan Johnson Co. broker Mike Philbintells GlobeSt.com. Philbin, along with the firm’s Sam Alisonand Amar Goli, recently represented seller Steve Grady of La Jolla-based the Focus Group in the sale of a newly build fast-food restaurant, Popeye’s, in National City, CA, to a San Diego-based private buyer at a cap rate of 4.25%. We spoke exclusively with Philbin about why the transaction was particularly significant and trends he is noticing in the 1031-exchange market.
GlobeSt.com: What’s significant for you about the Popeye’s transaction?
Philbin: The cap rate paid for the property was 4.25%, which was aggressive considering that the franchisee was just starting to expand in the area. We expected the listing would be attractive to buyers because of the lack of available properties in San Diego, but we were blown away by the amount of activity and the number of offers received at or near the asking price. Achieving this low of a cap rate for a smaller operator indicates the high demand for new product…
