A two-tenant, 66,070 sq. ft. Burbank, Calif., retail property has sold for $28.75 million. Faris Lee Investments, an Irvine, Calif.-based broker representing the seller, Univest Development Group of Scottsdale, Ariz., says that the property value is based on a low 5.58% cap rate compared with other Los Angeles-area, retail properties.

AMC Associates, the Los Angeles-based buyer, is in a 1031 Exchange program and this is an all-cash deal, according to Faris Lee. The tenants at the property include Ralph’s, a grocery store, and CVS Pharmacy. As part of a triple-net lease arrangement, the tenants are responsible for property maintenance, insurance and taxes, in addition to rent.

“Although cap rates are still moving and lenders have been more conservative on financing terms, there is an ample amount of 1031 Exchange buyers and others in the marketplace, especially for trophy properties like this one,” says Shaun Riley, director of Faris Lee. “Because of the lack of alternative investments today, sellers are still able to achieve cap rates, which are near historic lows.”

Richard Walter, president of Faris Lee, describes the tenants as “two of the largest and most creditworthy retailers in the country.” According to Walter, these tenants offer the buyer “a stable, institutional-quality asset in an irreplaceable, densely populated infill location with excellent rental increases throughout the term for both tenants.”

The property, built in 1998 and located on more than 6 acres, attracted 11 offers from private investors, some of them in 1031 Exchange programs, and sold at 99% of the asking price, according to Faris Lee.

Investors were attracted by the property’s location in a busy intersection that sees a lot of car traffic every day, as well as the population of 462,000 that lives within a five-mile radius of the property, says the broker. As well, the property is located close to downtown Los Angeles and is close to some connecting freeways.

Steve Dietrich of Financial Research Group, Terry Marks of National Net Lease Realty, and Clifford Letovsky of Letovsky Real Estate Corp. represented the buyer.