Rare Single-Tenant Absolute NNN Grocery Asset

Description:

Rare Single-Tenant Absolute NNN Grocery Asset This investment offer includes a ±55,339 SF single-tenant Lucky California on a ±6.14-acre parcel, operating under an absolute NNN lease with zero landlord responsibilities. Located in the heart of Santa Rosa, the site is ideally located adjacent to a top performing Home Depot, just off the 101 Freeway Bicentennial Way on-ramp/off-ramp.

Prime Infill NorCal Area Location Lucky California is located in a dense commercial area surrounded by rooftops, shops, parks, and schools. The site is one (1) block from Kaiser Permanente – Santa Rosa Medical Center and the Sonoma County Sheriff’s Office. The property benefits from 52,523 cars per day at the intersection of Bicentennial Way and Mendocino Avenue.

Corporate Lease with Save Mart Companies The tenant, Lucky California, is operated by The Save Mart Companies, one of the largest regional grocery operators on the West Coast. The company operates more than 200 grocery locations under the Save Mart, Lucky, FoodMaxx, Roth’s, and Chuck’s Fresh Markets banners throughout California, Nevada, Oregon, and Washington. The supermarket has an in-store pharmacy in addition to grocery items.

Strong Parent Company: The Jim Pattison Group Save Mart is owned by The Jim Pattison Group, a diversified conglomerate with over $19 billion in annual revenue and 59,000+ employees, further enhancing the credit profile of the tenancy.

Fee Simple Ownership with Depreciation Benefits Investors benefit from fee simple ownership and the ability to depreciate improvements, enhancing after-tax cash flow.

Long-Term Lease with Built-In Growth The lease commenced in December 2021 and runs through November 2036, with approximately 10+ years remaining. It includes 1.75% annual rent increases and three (3), five (5)-year options plus one (1), three (3)-year and eleven (11)-month option, ensuring stable and growing cash flow.

Essential Daily Needs Retailer Lucky serves as a critical provider of groceries, fresh produce, pharmacy, household goods, and daily essentials to the surrounding community. Grocery-anchored real estate remains one of the most defensive retail asset classes, benefiting from recurring customer visits and consistent demand regardless of economic cycles.

Absolute NNN Lease – Zero Landlord Responsibilities The tenant is responsible for all expenses, including property taxes, insurance, utilities, HVAC, CAM, roof, structure, and parking—offering a true passive investment.

Strong Retail Synergy The property is part of a well-established shopping center with national co-tenant Home Depot, driving consistent foot traffic and cross-shopping.

Ideal 1031 Exchange Opportunity
With a corporate-backed lease, strong NOI growth, and zero management, this asset is a perfect fit for investors seeking a stable, long-term, cash-flowing 1031 exchange replacement.

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