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.