SAN JOSE, Calif., April 14, 2014 – Marcus & Millichap (NYSE: MMI), a leading commercial real estate investment services firm with offices throughout the United States and Canada, today announced the sale of a 122,265-square-foot Home Depot store in San Jose, Calif. The $15,575,000 sales price equates to $127 per square foot and a 3.77 percent capitalization rate. Mike James, associate vice president investments in Marcus & Millichap’s Encino office, represented the seller, an institutional investor.
“Situated in the heart of Silicon Valley, this Home Depot is a trophy triple-net-leased asset. The investment has more than 20 years remaining on the initial lease term and provides significant inflation protection with 10 percent rental increases every five years,” says James.
“More than 22 ‘best and final’ offers were presented and over half of them came through Marcus & Millichap agents on behalf of multifamily investors in 1031 exchanges. The record pricing is a direct result of our firm’s ability to source apartment exchange buyers seeking less management-intensive investments,” James concludes.
The property was constructed in 1997 on 11.4 acres. It is located directly off California State Route 87 at 635 West Capitol Expressway in San Jose, Calif., in an ultra-high net-worth metropolitan statistical area where the average annual household income within one mile of the store exceeds $123,000.
The Home Depot Inc. is the world’s largest home improvement specialty retailer with fiscal 2013 retail sales of $78.8 billion and earnings of $5.4 billion.
About Marcus & Millichap (NYSE: MMI)
With over 1,300 investment professionals located throughout the United States and Canada, Marcus & Millichap is a leading specialist in commercial real estate investment sales, financing, research and advisory services. Founded in 1971, the firm closed over 6,600 transactions in 2013 with a value of approximately $24 billion. The company has perfected a powerful system for marketing properties that combines investment specialization, local market expertise, the industry’s most comprehensive research, state-of-the-art technology, and relationships with the largest pool of qualified investors. To learn more, please visit: www.MarcusMillichap.com <http://www.MarcusMillichap.com>