Investment Overview

Marcus & Millichap presents an investment opportunity in Union City, California, that combines simplicity with strategic financial benefits. This property, home to a Lucky’s grocery store, offers an absolute triple net lease (NNN), which means the investor is relieved of all property-related responsibilities. This structure ensures a passive income stream, ideal for those seeking a hands-off investment approach. Ownership in leasehold interest not only grants full control over the property but also opens up avenues for tax benefits, potentially enhancing the investment’s returns. The property’s financial appeal is further underscored by its 7.00 percent capitalization rate, which, backed by Lucky’s strong credit, promises competitive growth in yields. The lease terms are structured for longevity and growth, with five years remaining on a 30-year initial term. Additionally, there are options for rent increases, aligning the investment’s income with inflation, thereby safeguarding its value over time. Lucky’s commitment to this location ensures stability and predictable income for the foreseeable future. Located for maximum visibility and traffic (40,000+ Cars Per Day), the property benefits from Union City’s strategic positioning at the signalized intersection of Dyer Street and Alvarado-Niles Road. The area’s affluent demographic supports higher consumer spending power, which in turn supports the property’s long-term viability with over 317,000 population in a five-mile radius with average household income of $160,578. This investment opportunity transcends traditional real estate investment by offering not just a property, but a secure, low-maintenance income stream with potential for growth. It’s an ideal choice for investors looking for stability, simplicity, and strategic financial advantages.