By Jon Peterson
MetLife Investment Management has placed on the market for sale a portfolio of 22 net-leased sites all occupied by Chase Bank in Northern and Southern California. The asking price for the entire portfolio is $149.5 million, according to the portfolio’s offering document.
MetLife has owned these properties for a long-time. The seller has awarded the listing on the assets to the CBRE office in El Segundo. Those working on the transaction include Dan Riley and Bill Durslag, both senior vice presidents, and Simon Mattox, vice president. The debt and financing options on the portfolio are led by Greg Grant, senior vice president with the firm.
There are three different investment scenarios that the MetLife is offering for the portfolio. One would be for the new owner to acquire the entire portfolio together. Under this scenario the cap rate would be 4.68 percent, according to the portfolio’s offering document. This return would be based on a first-year net operating income of $7 million.
Alternatively, a buyer could only purchase the 12 assets that are located in Southern California. The asking price on these properties is $87.1 million with a 4.73 percent cap rate. Finally, a different capital source could purchase the 10 remaining properties that are in Northern California. These assets have an asking price of $62.4 million with a cap rate of 4.61 percent, according to the marketing documents.
The projection is that two main capital sources will emerge as likely buyers interested in the Chase Bank portfolio, according to sources familiar with the marketplace for these kinds of assets. One would likely be high net-worth individuals and the other could bring institutional buyers to acquire the portfolio.
The Chase Bank leases in the properties have a term that runs until the end of September 2030. There also are three five-year renewal options available to the tenant. All of the leases are triple-net in nature and have a 10 percent rental rate increase in October 2025.
All of the properties in Southern California are occupied except for one. This is the property located at 2121 and 2103 Torrance Boulevard in Torrance. This asset is currently vacant, according to the portfolio’s offering document.
The location of the other properties in the southern part of the state are 24000 Valencia Boulevard in Valencia; 2398 Sycamore Drive in Simi Valley; 60 East Huntington Drive in Arcadia; 449 North La Brea Avenue in Los Angeles; 2270 Huntington Drive in San Marino; 401 East Valley Boulevard in Alhambra; 8450 Firestone Boulevard in Downey; 15625 Whitter Boulevard in Whittier; 7964 Beach Boulevard in Buena Park; 101 South Harbor Boulevard in Anaheim and 2713 Hawthorne Boulevard in Rolling Hills Estates.
The assets in the northern part of the Golden State are located at 540 Colusa Avenue in Yuba City; 2750 Van Ness Avenue in San Francisco; 1535 Tiburon Boulevard in Tiburon; 270 East 18th Street in Oakland; 98 West Portal Avenue in San Francisco; 1188 El Camino Real in Burlingame; 38980 Fremont Boulevard in Fremont; 20573 Stevens Creek Boulevard in Cupertino; 2670 Berryessa Road in San Jose and 1402 Lincoln Avenue in San Jose.