7111 Camino Arroyo Dr Gilroy, CA 95020

Property Details for 7111 Camino Arroyo Dr

Year built

2004

Lot size

1.03 lot acres

Property size

5,900 SF

Property type

Retail properties & Spaces

Property subtype

Banks

Description

This exceptional investment opportunity presents a fee-simple ground lease on a 5,900 square foot, single-tenant retail property occupied by Bank of America. Located at 7111 Camino Arroyo Dr, Gilroy, CA 95020, this freestanding building boasts a prominent hard corner location with a dedicated drive-thru lane. The property sits on a 1.03-acre lot within the thriving Pacheco Pass Center, a dominant regional shopping center featuring major national retailers such as Costco, Walmart, Lowe's, and Best Buy. The Bank of America lease is a triple-net (NNN) lease, meaning all property maintenance responsibilities, including roof, structure, parking lot, and general upkeep, fall solely on the tenant. This minimizes landlord responsibilities and ensures a stable, low-maintenance investment. The current lease has a remaining term of 4.3 years, expiring March 25, 2029, and includes four (4) to five (5) year renewal options at fair market value (FMV), with rent increases not less than the prior rent. The property features a 4.80% cap rate and a net operating income (NOI) of $193,800, with an asking price of $4,037,500. Built in 2004, the property is zoned A1-25 and offers significant potential for future uses given its prime location and drive-thru accessibility. The tenant, Bank of America, is credit-rated, providing further assurance of consistent income. This stabilized investment offers a compelling combination of strong tenant occupancy (100%), a favorable lease structure, and a desirable location within a high-traffic retail center.