Smart & Final

Description:

KW Commercial is pleased to present for sale the high-performing single-tenant Smart & Final Supermarket located at 1700 High Street in Delano, CA. Smart & Final purchased the property in October of 2013, signed a new 20 Year NNN lease via a sale-leaseback structure in 2014, and completely remodeled the interior and exterior of the store prior to opening for business. The property is leased by Smart & Final Stores LLC on a corporate-guaranteed triple-net lease. This property has served as a grocery store (formerly Save Mart Supermarket) in the Delano community for over 40 years, reflecting the strength and success of this location. The asset offers investors the opportunity to acquire a successful grocery chain on a long-term lease with below-market rent and zero landlord responsibilities. Per Placer.ai, this store ranks 11/251 and is in the 96th percentile of all Smart & Final stores nationwide. The nearest Smart & Final locations are in Bakersfield (~37 miles away) and Porterville (~29 miles away). Smart & Final is the anchor tenant of Delano Village Shopping Center and occupies 33,200 SF of GLA. Additional tenants within the shopping
center include Starbucks, O’Reilly Auto Parts, Citizens Business Bank, and AT&T. Delano Village is located just off Highway 99, the major highway connecting Sacramento to Bakersfield. For a Smart & Final store in a shopping center with about nine years left on the lease, the cap rate typically falls between 5.0 and 5.5 percent if the lease is strong and in a prime location. In recent years, similar deals have been around 5.4 to 6.0 percent lf the lease terms are weaker or the market is less ideal, the cap rate could rise above 6 percent.


Kern County encompasses diverse landscapes in the Southern San Joaquin Valley, Tehachapi and Sierra Nevada mountain ranges and the Western Mojave Desert. Spanning 8,161 square miles, Kern ranks as California’s third largest county by area. Kern County boasts an estimated population of 923,961 residents. The county’s economy is historically intertwined with agriculture and petroleum extraction, yet it is also a significant producer of natural gas, hydroelectric power, biomass, solar, and wind power. The eastern side of Kern County hosts strong presences in experimental aviation, spaceports, and hosts two large military bases. With its strategic location, Kern County is emerging as a vital distribution hub, offering easy access to Southern California, the San Francisco Bay Area, the western coastline, and routes to eastern markets.



Approximately 9 Years of Primary Lease Term Remaining
Absolute NNN Lease Structure with Zero Landlord Obligations
7.50% Rent Increases Through Primary Term and Options
Low In-Place Rent of $9.62 psf
Smart & Final Stores, LLC Corporate Guaranteed Lease
Parent Company Chedraui USA / Grupo Comercial Chedraui is Also Parent Company of El Super
33,200 SF Building Situated on 3.37 Acres of Land
Anchor Tenant within Delano Village Neighborhood Shopping Center
Completely Renovated in 2014 (New 20 Year Lease Signed)
96th Percentile Ranking Per Placer.ai (11 out of 256 Stores)
Building Has Been Occupied by a Grocery Store (Former Save Mart Supermarket) for 40 Years

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