14434-14480 Sherman Way

Description:

Irreplaceable Two-Tenant Asset in the Heart of the San Fernando Valley

The property presents a highly prominent and passive two-tenant retail center investment. It is occupied by the nationally recognized investment-grade tenant, DaVita (DVA-NYSE), and the highly successful regional restaurant operator Gallo Giro, boasting ten (10) locations within the Los Angeles MSA.

The property, spread over 1.2 acres, consists of two (2) buildings totaling 18,296 sq. ft. and seventy (70) parking spaces, located at the intersection of Van Nuys Blvd. and Sherman Way. This strategic signalized corner commands impressive traffic counts that exceed 86,800 cars per day.

The diversified tenant mix comprising of an investment-grade medical facility and major restaurant establishment offers investors a well-balanced and synergistic asset with long-term security. Medical and food-use assets remain the most coveted and hardest to achieve approvals for in the Los Angeles MSA.

The DaVita lease includes structured increases of 2.5% annually and 15% every five (5) years for the Gallo Giro lease, providing an inflation hedge. Furthermore, the current rents are below market rates, presenting potential for future income growth as lease terms are renewed.

The property features long-term leases with optimal NNN lease structures. These leases are thoughtfully structured to allow NNN reimbursement by tenants, along with an administrative fee reimbursement, creating a passive investment with minimal operating exposure for the landlords.

Centrally located in Van Nuys, the asset contains an ideal consumer base in a densely populated area. The immediate surrounding vicinity consists of robust trade area with over 46,400 residents within a 1-mile radius, 328,851 within a 3-mile radius, and a daytime population surpassing 278,160 within a 3-mile radius. This creates a continuous stream of consumers round the clock.

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