1516 E Valley Pky
Escondido, CA 92027
Grocery Outlet · Retail Property For Sale

SRS National Net Lease Group is pleased to offer the opportunity to acquire the leased fee interest (land ownership) in a NN leased, corporate guaranteed, Grocery Outlet, investment property located in Escondido, CA (San Diego MSA). The grocery anchor is accompanied by a 5,476 SF free standing building that provides for tremendous upside opportunity upon lease up by a new owner. The tenant, Grocery Outlet Inc., has approximately 5 years remaining on its initial 10-year lease term with 4 (5-year) options to extend. The lease features a 10% rental increase at the beginning of the sixth year of the lease term and at the beginning of each option period, steadily growing NOI and hedging against inflation. The lease is corporate guaranteed and is NN with limited landlord responsibilities. The subject property is located near the signalized hard corner intersection of E. Valley Parkway and N. Rose St., averaging a combined 39,300 vehicles passing by each day. The site has a large monument sign, providing for excellent visibility and street frontage on E. Valley Parkway. Moreover, it is located a half-mile away from State Highway 78 (20,400 VPD) and about 3 miles away from Interstate 15, the major north/south thoroughfare going through Escondido, averaging 238,000 vehicles passing each day. Grocery Outlet is in the heart of a dense retail corridor, with nearby national/credit tenants including Walmart, Walmart Neighborhood Market, The Home Depot, Dollar Tree, CVS Pharmacy, Bank of America, Joann’s, and more, increasing consumer draw to the trade area and promoting crossover shopping to the site. Escondido is a bedroom community of San Diego, one of the most populated cities in the state of California, second only to Los Angeles. The subject property is about 15 minutes from the San Diego Zoo Safari Park, which reports over 1.2 million visitors annually. The site is also located about 15 minutes away from California State University of San Marcos, which currently has more than 13,000 undergraduate students enrolled. More locally, the 5-mile trade area is supported by nearly 192,000 residents with an affluent average annual household income of $86,662.