RealSource Group has recently completed the sale of a single-tenant property occupied by Pilot Flying J Travel Center in Jurupa Valley. The transaction, which closed at $14 million, has set new nationwide records for both the highest sales price and price per square foot for a Pilot ground lease. This sale also marks an all-time low closing cap rate of 4.90% for a Pilot ground lease outside of Texas.
The seller, Greens Group based in Irvine, was represented by RealSource SVP of investment sales Austin Blodgett and associate Jonathan Schiffer. Both Blodgett and Schiffer also represented the buyer – a private investor located in Irvine.
According to Blodgett, this sale is significant as it sets national benchmarks for pricing on a Pilot ground lease property. He further explains that this acquisition was the buyer’s first net-lease purchase due to its strong underlying real estate value and security offered by the well-known brand now owned by Berkshire Hathaway under Warren Buffett’s leadership.
The tenant’s absolute triple-net ground lease structure relieves the buyer from any landlord responsibilities. “Pilot Flying J has over 14 years remaining on their initial lease term with four five-year options and rental increases every five years,” adds Blodgett.
This recent transaction showcases RealSource Group’s expertise in navigating complex deals within highly sought-after markets such as Jurupa Valley without compromising on record-setting pricing metrics.
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