La-Z-Boy

La-Z-Boy – 626 Contra Costa Blvd is a retail sale-leaseback at 626 Contra Costa Blvd in Pleasant Hill, CA. The 14,359 SF property pairs a La-Z-Boy showroom with an Absolute Net lease, giving buyers a defined tenancy and income structure.

The property occupies 0.83 acres and includes 43 parking spaces, a practical feature for customers shopping for furniture. Built in 1971, the building is 100% occupied. The sale-leaseback calls for a 10-year lease guaranteed by Northern California Chair Corp., with 10% rent increases every five years and two 5-year options. Tenant responsibility for property taxes, insurance, utilities, maintenance, and roof and structure expenses puts the allocation of operating obligations at the center of the investment case.

The Pleasant Hill location sits on Contra Costa Boulevard in the retail area identified as Furniture Row, near Sunvalley Shopping Center and The Veranda. Target, Best Buy, and Nordstrom Rack are among the nearby retailers. Traffic of 27,862 AADT gives the showroom exposure on its street, while the surrounding home-furnishings and shopping destinations place it within an established retail setting. Downtown Pleasant Hill is 2 miles from the property, adding another identifiable destination within the trade area.

At an asking price of $7,325,000, or $510 PSF, the sale is positioned at a 6.25% in-place cap rate on $457,800 of in-place NOI. For a buyer focused on single-tenant retail income, the lease structure and scheduled rent increases establish the terms behind that return. The property is also offered for individual purchase or as part of a portfolio. See the Offering Memorandum in the Offering Materials for the transaction.