The offering provides an investor with the opportunity to acquire a Chase Bank ground lease located on the heavily trafficked El Camino Real in Santa Clara, CA. Chase Bank is currently on a 20-year ground lease, and has over 14 years remaining in the initial term, followed by four 5-year extension options. The lease features 10% rental escalations every five years, providing an attractive hedge against inflation. The subject property is located on the signalized corner of El Camino Real and Flora Vista Avenue (44,370 VPD combined), and is just off of Lawrence Expressway (62,230 VPD), which is a major north-south thoroughfare that runs through Silicon Valley. Santa Clara is an extremely affluent and thriving market, with the population exceeding 566,218 within a 5-mile radius and average household incomes that surpass $144,045.
Santa Clara is located directly west of San Jose, and is in the center of Silicon Valley and home to Intel, as well as several other notable high tech companies. The Santa Clara economy continues to thrive due to the flourishing tech industry, which has prompted strong consumer retail demand, high occupancy levels, and consistent annual rent growth for retail. The subject property is in an extremely high barrier to entry market, with low levels of construction in the surrounding area, making demand for this product type especially strong. Chase Bank is situated within a dense retail node along the El Camino corridor, and surrounding retailers include a dynamic mix of daily needs tenants such as Lucky, Walgreens, Starbucks, Big Lots and Dollar Tree.