SAN JOSE, Calif., January 29, 2019 – Paragon Commercial Group, LLC (Paragon), one of California’s most prolific retail development firms, has completed the sale of a rare In-N-Out Burger ground lease to a private Bay Area buyer for $6.925 million.
Paragon began work in 2014 to acquire the former parking lot site from a Lowe’s Home Improvement and concurrently entered into a ground lease with In-N-Out Burger for a single tenant restaurant. The restaurant is currently under construction and is expected to open in Q1 2019.
“We are thrilled with the outcome on the sale of this first-class asset and we’re even more excited about the opportunities to come in 2019. Paragon remains bullish on value-add retail opportunities throughout Northern California and we anticipate acquiring a couple hundred million in Northern California retail assets in the very near term,” said Patrick McGaughey, Paragon’s Northern California Director of Investments.
The site is located in a prime arterial of Silicon Valley, south of the 101 Freeway on the corner of Great Oaks Parkway and Cottle Road, between big box retailers Target and Lowe’s. Christopher Sheldon of Cushman & Wakefield represented Paragon and Andy Chana of Sands Investment Group represented the buyer in the transaction.
Based in Southern California, Paragon expanded operations into the Bay Area in 2015 with the opening of a Palo Alto office. Since then, Paragon has acquired and developed projects in Cupertino, Concord, and San Jose.
“We are proud to have worked collaboratively with one of California’s most iconic retail brands—In-N-Out Burger—to enable the opening of a new location in this very high barrier to entry market. We received significant support from the community and we are confident that In-N-Out will continue its lengthy tradition of being a great neighbor in the communities that is serves,” said Jim Dillavou, Paragon Co-Founder and Principal.
About Paragon Commercial Group
Founded in 2009, Paragon Commercial Group acquires, develops and manages high-quality, value-add retail investments anchored by best in class retailers in high barrier to entry markets yielding attractive risk-adjusted returns to Paragon’s investors and stakeholders. Paragon’s Principals have a combined 80-year track record of successfully developing or repositioning 12 million square feet of neighborhood and community centers. One of California’s most active and opportunistic retail investment platforms, Paragon strives to create value through socially responsible and sustainable development and by working closely with its constituencies and municipalities.
About Cushman & Wakefield
Cushman & Wakefield (NYSE: CWK) is a leading global real estate services firm that delivers exceptional value for real estate occupiers and owners. Cushman & Wakefield is among the largest real estate services firms with 48,000 employees in approximately 400 offices and 70 countries. In 2017, the firm had revenue of $6.9 billion across core services of property, facilities and project management, leasing, capital markets, valuation and other services. To learn more, visit www.cushmanwakefield.com or follow @CushWake on Twitter.