The Sale of the Del Taco in Southern California

Challenge

The main challenge imposed by the sale of the Del Taco in Southern California was locating a property that met the buyer’s strict investment criteria. For over a year, Matthews™ agent Marco Arambula worked diligently to source a long-term, stabilized fast-food asset in Southern California with a triple-net lease. After extensive market research and outreach, a Del Taco was identified as a potential fit. However, the buyer expressed initial hesitation. One concern stemmed from the fact that the lease guarantor was not a corporate entity, but rather an individual franchisee. Additionally, the buyer questioned the market demographics, particularly the relatively low population when compared to other Southern California markets. These concerns presented notable obstacles in moving forward with the acquisition.

Strategy

To overcome the buyer’s reservations, Marco focused on showcasing the strength and potential of the asset. The agent clarified that while the guarantor was not corporate, it was a well-known and highly experienced franchisee with a strong operational history. A key selling point was the fact that the tenant voluntarily reported sales, a practice not required under the lease terms, which provided valuable transparency. Upon review, sales were found to be significantly above the national average, and the rent-to-sales ratio was determined to be healthy and sustainable. Furthermore, the property itself offered compelling attributes. Strategically positioned at the busiest intersection in the city, the Del Taco sat on over an acre of land, providing potential for future repositioning or redevelopment should the tenant decide not to renew. Among all the properties previously considered, this location stood out as the right match for the buyer’s objectives.

Results

Despite the presence of multiple offers and strong demand for quick-service restaurant assets in the current interest rate environment, Marco successfully positioned the buyer as the preferred candidate. By advising an aggressive all-cash offer and streamlining the due diligence process, the agent secured the deal at a purchase price of $2,500,000. This transaction closed efficiently and exceeded the buyer’s expectations. The client was thrilled with the outcome and is now benefiting from a reliable, passive income stream, true “mailbox money”, from a high-performing tenant in a desirable Southern California location. The acquisition perfectly aligned with the buyer’s goal of owning a stabilized, long-term triple-net fast-food property.

Client Testimonial

To Whom It May Concern,

As a family with multiple properties across California, we have worked with several brokers over the years. Many have reached out to us, eager to help sell our properties, but few have taken the time to truly understand our long-term investment goals. Marco Arambula stood out from the rest, not by pushing a sale, but by listening carefully to our motivations and helping us acquire the right asset for our portfolio.

From the moment we decided to work with Marco, he was diligent in his search, consistently providing us with market insights and identifying properties that met our criteria. He remained on top of the market daily, presenting us with well-vetted opportunities and guiding us through the complexities of the buying process with his deep knowledge of net lease investments.

Throughout our search, we pursued multiple properties, facing challenges such as environmental concerns, misleading listings, and the competitive demand for quick-service restaurant assets. Despite these hurdles, Marco remained patient and proactive, ensuring that we ultimately secured a high-performing Del Taco property in Southern, CA. His expertise helped us recognize the value of this investment, particularly the strong tenant sales, healthy rent-to-sales ratio, and the strategic location at the busiest intersection in the area.

Every time we submitted an offer on a property, Marco personally met us at the site, always dressed professionally and prepared with thorough market insights. His responsiveness, honesty, and commitment to our success made him an invaluable partner in this transaction. Thanks to his guidance, we are now owners of an asset that we are truly satisfied with.

Marco is a true specialist in the net lease space, and we highly recommend him to anyone looking to buy or sell commercial real estate. His professionalism, market expertise, and dedication to his clients set him apart. We look forward to working with him again in the future.