Initial Cap Rate: 3.50%
Effective Cap Rate: 3.76%
Net Operating Income: $194,955
Square Footage: 3,778
Lot Size: 0.34 AC
The subject is a corporate Jiffy Lube with an absolute NNN Lease in Palo Alto, California. The NNN lease includes 2.5% annual rent increases throughout the primary term and one, five-year renewal option. The lease is corporately guaranteed by Jiffy Lube International, Inc. with zero landlord obligations. The asset is well positioned on a hard corner of a major commercial thoroughfare with heavy traffic counts of over 45,900 VPD. Jiffy Lube has operated at this prime infill location for more than 30 years.
Palo Alto is known as the “Birthplace of Silicon Valley.” The city is recognized worldwide as a leader in cutting-edge technological development. Palo Alto is home to Stanford University and shares its borders with East Palo Alto, Mountain View, Los Altos, Los Altos Hills, Stanford, Portola Valley, and Menlo Park.
Palo Alto is one of the most expensive cities in the United States in which to live and its residents are among the most educated in the country. Unique among city organizations, the City of Palo Alto operates a full-array of services including its own gas, electric, water, sewer, refuse, and storm drainage provided at very competitive rates for its customers. The City of Palo Alto offers robust community amenities including 36 parks, 39 playgrounds, five community and youth centers, 41 miles of walking/biking trails and five libraries. Palo Alto is an award-winning City recognized nationally as innovative and well-managed, one of a small number of California cities with an AAA bond rating.