One of San Francisco’s busiest neighborhood grocery hubs just changed hands, but shoppers probably will not notice a thing.
Pacific Development Partners, a Los Angeles-based investor, has paid $32 million for the Lucky Supermarket that anchors Lakeshore Plaza in the Sunset District. The single-tenant store sits on Sloat Boulevard and serves as the core of a heavily trafficked retail strip, and the deal was structured as a 1031 exchange aimed at locking in steady, necessity-driven income.
The deal and the numbers
According to CoStar, Pacific Development Partners acquired the Lucky at 1515 Sloat Blvd from Oak Street Real Estate Capital for $32 million. CoStar reports the transaction was part of a 1031 tax-deferred exchange and pegs the sale at about $650 per square foot, a figure that highlights how investors are pricing grocery-anchored retail in tight urban markets.
Property and lease
Marketing materials show the building spans about 49,188 square feet on roughly 2.32 acres and operates under an absolute NNN lease to Lucky/Save Mart, according to the offering posted on Crexi. The listing states the lease began in December 2021 and runs through November 2036, with 1.75% annual rent escalators and multiple extension options. For the buyer, that setup translates into a long runway of predictable cash flow with minimal landlord responsibilities.
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