Deal Close
June 18, 2026
Type
Single-Tenant Retail, 2,307 SF
Price
$1,537,500
Marco Arambula
San Diego Retail Team
Executive Summary
The elderly seller on this deal insisted on purchase agreement language making his sale contingent on finding his own 1031 exchange replacement property first — a condition no buyer was likely to accept.
Rather than let the deal collapse over it, Greysteel found him a genuine replacement property, let the sale proceed on ordinary terms, and closed with a value-add developer betting on the current tenant’s lease expiring in two years.
The Challenge
The seller’s insistence on tying his sale to finding his own replacement property first threatened to sink the deal before it started, since virtually no buyer would accept that kind of contingency in a purchase agreement.
The Solution
Rather than continue negotiating language the market wouldn’t accept, Greysteel showed the seller currently available properties and the realistic timeline risk of waiting, then secured an actual replacement property for him directly — clearing the underlying concern instead of arguing about the contract language built around it. Working with the seller’s daughter later in the process also helped move things along.
Results
- $1,537,500 sale price, closed as a standard transaction once the seller’s exchange concern was resolved
- Buyer is an active value-add developer anticipating the franchisee’s lease expiration in roughly two years
- Current rent (~$72,000/year) sits well below an estimated market rent of $110,000–$120,000/year, setting up a repositioning opportunity
- Also facilitated the seller’s own 1031 up-leg acquisition alongside this sale
“Greysteel identified both the buyer and the seller’s replacement property, allowing the transaction to move forward after overcoming challenges surrounding the exchange. The buyer, an experienced developer, acquired the asset as a value-add repositioning opportunity, anticipating the current tenant’s lease expiration and future rent growth through a new tenancy.” — Marco Arambula, Greysteel Lead Deal Contact, San Diego Retail Team
Greysteel Advisory Expertise
Greysteel is a commercial real estate advisory firm specializing in investment sales and debt and structured finance, serving private investors, middle-market operators, and institutional clients nationwide.
The firm provides sector-focused advisory across multifamily, healthcare, and affordable housing and other commercial real estate asset classes, delivering market intelligence, capital markets expertise, and disciplined execution.
