722 Grand Ave, San Diego, CA 92109

Grimes Group of Coldwell Banker Commercial is pleased to present this exceptional opportunity to acquire a coastal trophy asset with rare long-term development and income growth potential. Situated in the heart of Pacific Beach and steps from the ocean, 722 Grand Avenue is more than a retail investment; it's a legacy asset. This premier coastal property offers a generational opportunity to own a landmark in one of San Diego's most coveted beachside districts. The property consists of two adjacent parcels that include the building which houses the Firehouse Eatery, and an adjoining parking lot that fronts Hornblend Street. The two parcels comprise of approximately 12,500 square feet located west of Mission Blvd.

Unlocking Value at Renewal:

In 2022, coming out of the pandemic-era closures, the landlord extended a rent reduction to support the tenant by reducing the rent to $18,000 per month. Market rents is between $24K - $26K/mo. which is where this is headed. When the lease renews to Fair Market Value (FMV) in 2027, the property is positioned for a 30-40% NOI increase, directly translating into a cap rate expansion and a potential price adjustment from $10.5M to $12M.

Built-In Upside:

A buyer purchasing the property at today's price of $10.5M and holding it through the renewal option in 2027, the cap rate improves to 5.17% solely through the income to market rent.