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A real estate company announced the sale of the building that holds Starbucks and T-Mobile on 16th Street in Merced for a price tag of $2.64 million, according to a news release.
Hanley Investment Group Real Estate Advisors, a real estate brokerage and advisory firm specializing in retail property sales, said on Thursday the two-tenant retail building was sold for a record-low capitalization rate for that type property in Central California at 5.06 percent.
A capitalization rate, commonly called a “cap rate,” is the market value of a building divided by its earning potential in a year. A low rate is a signal of the increasing demand for property.
The Merced building was sold by a Bakersfield-based seller to Ares Commercial Properties Inc. of Novato, the release said. Built in 2016, the 3,700-square-foot building sits on 0.61 acres and features a 1,900-square-foot Starbucks with a drive-thru and a 1,800-square-foot T-Mobile store.
The all-cash sale marked the record-breaking cap rate and a price per square foot for a two-tenant net-leased investment in Central California, according to Bill Asher, the executive vice president for Hanley Investment.
The same company arranged the sale of the Starbucks near Merced Mall, according to the release.