Facts

Caltrans filed a complaint in eminent domain to acquire property owned by defendant Mac 5 Properties LLC, which is owned by the McCulloch Family. The property was improved with a Carl's Jr. Restaurant and located along the Interstate 5 in Santa Fe Springs. The acquisition of the property was for the Caltrans' Interstate 5 widening project.

PLAINTIFF'S CONTENTIONS:
Caltrans claimed that the property's value was diminished based on an assumption that the corporate tenant Carl's Jr. would not exercise its right to renew its lease and continue operating on the property.

Plaintiff's initial deposit was in the amount of $2,093,370 and included $318,370 for furniture, fixtures and equipment and $1,775,000 for the real estate.

DEFENDANT'S CONTENTIONS:
The McCulloch Family claimed that the value of the property was bolstered by the property's freeway proximity, the property's use as a corporately owned and operated quick-serve restaurant, and security of tenancy with a high credit tenant Carl's Jr.

Result

The case settled three weeks before the jury trial was set to commence. Caltrans agreed to pay a total amount of $2.9 million.

Other Information

FILING DATE: June 20, 2013.