The building that holds Borders Books & Music in Downtown San Diego’s Gaslamp Quarter was sold for $13 million or $396 per square foot, in a transaction announced on Feb. 17.
San Diego-based LandGrant Development was the seller, and the buyer was an unnamed private real estate investment trust based in San Francisco.
The property sold with a 7 percent market capitalization rate the percentage that represents the return on the investment. According to Pete Bethea, a retail broker at Burnham Real Estate Services, this is about the average for the San Diego County retail property market.
The Borders store at 686 Sixth Ave. was constructed in 2002 and includes 33,000 rentable square feet.
The leasing arrangement is what those in the real estate industry call a triple net lease, according to Shawn Bakke, the investment specialist at Marcus & Millichap who represented the seller.
In this arrangement, the tenant is responsible for paying all of the costs related to the lease, such as upgrades, utilities and repairs.
Bakke and his colleague, Christopher Maling, marketed the property on behalf of LandGrant Development.