A private developer in San Diego County sold a newly renovated, single-tenant, net-leased Grocery Outlet in Blue Jay, Calif. — the gateway to the Lake Arrowhead resort area — to a private investor in Los Angeles for $6.05M.
Property: Renovated Grocery Outlet in Blue Jay, Calif.
Price: $6.05M
Seller: Private developer in San Diego County
Buyer: Private investor in Los Angeles
Grocery Outlet operates 563 stores in 16 states and added 67 locations in 2024. The company reported $1.17B in third-quarter revenue — up 5.4% year-over-year — and plans to open 35 more stores by the end of 2025. Its independent operator model and “value treasure hunt” approach — offering brand-name products at deep discounts — drive frequent visits and loyalty.
The Blue Jay site is a 24,000-s.f. building that sits on 1.51 acres at 27315 North Bay Road. It recently experienced a full conversion from a former movie theater into the new store. It is the only Grocery Outlet within a 25-mile radius and one of just three supermarkets in the area.
“The buyer’s attraction to the property stemmed from its prime location at a main entrance to Lake Arrowhead, its strong in-place performance — the store has been open for over a year and has established itself in the community as a strong performer — and the tenant’s essential, value-driven retail model. The buyer already owned another Grocery Outlet and was familiar with the trade area, making this a strategic addition to their portfolio,” said Bill Asher, EVP of Hanley Investment Group, who represented the seller.
He added, “Hanley Investment Group has experienced significant buyer demand for single-tenant, net-leased grocery assets in markets across the U.S., and we expect this trend to continue.”
