Chase Bank | Successful Operating History | Strong Deposits
Delano, CA
Price: $1,923,000Cap Rate: 6.25%Building SF: 9,600 SFLot Size: 37,460 SF (2 Parcels)Year Built: 1996Status: Available

Investment Highlights: 

Investment Grade Credit Tenant: JPMorgan Chase Bank (NYSE: JPM | S&P: A+) – Ranked by S&P Global as 6th Largest Bank in the World (2.535 Trillion in Assets) – The building is 100% leased to JPMorgan Chase Bank (NYSE: JPM). JPMorgan Chase Bank, N.A. (S&P A+), commonly known as Chase, is a multinational investment bank and financial services company headquartered in New York City. JPMorgan Chase is the largest bank in the United States and is ranked by S&P Global as the sixth largest bank in the world by total assets as of 2018, to the amount of $2.535 trillion. It is the world’s most valuable bank by market capitalization.

Strong Deposits at this Location (Over $60M) – Operated as a Banking Institution for 23 Years – Early Lease Extension Reflects Commitment to Site – Chase Bank has operated at this location since September 2008 when they were assigned the lease by the FDIC. In December 2017, Chase extended the lease early for another 5 years, reflecting their assumed success and commitment to the site. The lease is triple-net (NNN) with very limited Landlord responsibilities. 

7.5% Rent Increase in March 2021 – Bumps Cap Rate to 6.72% – Triple-Net Lease Offers Limited Landlord Responsibilities  – The tenant’s rent will increase by 7.5% in March 2021, providing an investor an attractive cap rate of 6.72%. The lease is triple-net (NNN) featuring very limited responsibilities for the Landlord. See lease abstract on page 5.  

Frontage Along Main Street – Outstanding Access & Visibility – Ample Parking – Multiple Drive-Thru Teller Lanes   – The subject property fronts Main St, offering excellent visibility and access. The Chase Bank features off-street parking with 51 spaces (easily accessed from Main St and High Street in rear) and offers four (4) drive-thru teller lanes for fast and easy in/out access for customers.  

Located in Downtown Core Close to City Offices, Shopping & Services – Proximity to HWY 99 (57,000 CPD) – Centrally Located Between Los Angeles & Sacramento – The The Chase Bank is ideally located in Downtown Delano, amongst a strategic concentration of banking institutions that serve the flourishing agricultural economy of the Central Valley. The property is also close to city offices and services, as well as retail neighbors Vallarta Supermarkets, Goodwill, Central Valley Office Supply, Family Dollar, Chamber of Commerce, and T-Mobile. Delano is centrally located between the cites of Los Angeles and Sacramento.

Delano: One of the Fastest Growing Cities in California – New Commercial & Residential Development – Agriculture a Major Economic Drive  – The City of Delano is the second-largest city in Kern County, in the southern end of California’s Central Valley. Strategically located along Freeway 99 and well connected to surrounding communities by highways, Delano is emerging as the center of trade and services for residents within a 25-mile radius. Delano is one of the fastest-growing cities in California, and saw its population increase nearly 75% since 2000.

Delano is seeing an increase in new development, both commercial/retail as well as residential, bringing new jobs to the region and marking Delano as a shopping destination for surrounding outlying communities. Some of these developments include Delano Marketplace, a 45-acre shopping center anchored by Walmart Supercenter, with co-tenants including Ross Dress for Less, Valley Republic Bank, Hyatt Place, McDonald’s, IHOP, and Round Table Pizza; The Vineyard (Delano Marketplace II), a 42-acre project, with a majority of the space designated for big box retailer anchors with a lifestyle shopping center that will feature a movie theatre, restaurants, and shops; and Delano Lifestyle Center, a mixed-use project that will combine living, shopping, working and entertainment within a safe community.

Delano is known as the grape capital of the world, and is also an abundant producer of citrus products. It is the home of the global headquarters for Wonderful Citrus, America’s largest integrated citrus grower, shipper and packer, as well as other nearby farms including Munger Farms, a food production company, Lucich Farms, and Hronis Citrus, a large company that grows, packs and ships table grapes and citrus.


Ryan Barr

rbarr@lee-associates.com
O. 760.448.2446
F. 760.929.9977

Ryan Bennett

rbennett@lee-associates.com
O. 760.448.2449
F. 760.929.9977