Acquire in late 2021 as part of a 1031 exchange, this Del Taco is on a 20-year ground lease with an additional four, five-year options to renew the lease. The business portion of the property was recently purchased by a strong franchisee who operates a number of Del Taco locations throughout Southern Californnia.
This property is on a main retail thoroughfare with close proximity to the Fontana Auto Club Speedway. The speedway is home to a number of world class events including the NASCAR Cup Series 400, NASCAR Xfinity Series, and a number of other local and regional racing-related events.
OneV Capital plans to hold this property long term. Ground rent is very low for this property- this offers the ability to realize a major upside opportunity in the event the tenant elects not to renew its lease. The property is also located in a high barrier to entry market, meaning demand from prospective future tenants will be very high in the event the property needs to be re-tenanted.