SRS Real Estate Partners Closes $20.75 Million Ground Lease Sale of Target Property on Long Island

SRS Real Estate Partners announced the $20.75 million ground lease sale of a 145,000-square-foot single-tenant property occupied by Target located at 5750 Sunrise Highway in Sayville, NY. Built in 2014 and situated on 12.14 acres, there are approximately 14 years remaining on Target's absolute triple net, corporate-guaranteed lease. Calvin Short of SRS Capital Markets and Jeff Christian of First Street, Inc., represented the seller, a California-based private investor who had owned the asset for more than 20 years.

This transaction marks the only free-standing Target sale in the past three years nationally, according to Short. The SRS team secured multiple offers, with the majority coming from New York buyers, but ultimately selected the strongest offer from a California-based private owner who sold out of multifamily investments. The buyer was represented by Tyler Leeson and Peter Deltondo at Marcus & Millichap.

The significance of this sale lies in the property's exceptional performance metrics and location. This Target ranked in the top 10% nationally for the brand according to Placer.ai, and the sale terms support the continued demand for top-tier credit in the single-tenant net leased space. The property is situated in an affluent, dense trade area with high barriers to entry for new development, making it a particularly valuable asset in today's commercial real estate market.

The location provides additional strategic value as it is directly across from The Shops at SunVet mall, a Whole Foods and Sephora-anchored redevelopment, and is proximate to Sunrise Highway and major national retail brands including Costco, Home Depot, and Home Goods. Sayville serves as a gateway to Fire Island, a major tourism magnet attracting millions of visitors annually, ensuring consistent foot traffic and retail activity. This transaction demonstrates the ongoing strength of the single-tenant net lease market, particularly for properties with strong corporate guarantees and prime locations that offer stability and predictable returns to investors.