Hanley Investment Group Brokers San Diego Retail Sale
- Mar 10, 2020
Hanley Investment Group Real Estate Advisors has brokered the sale of a 14,244-square-foot retail property in San Diego for $3.6 million. The price represents an effective cap rate of 5 percent, once solar income is removed. Repair company Caliber Collision occupies the entire asset. The firm recently acquired an existing business that had operated at the property for more than 25 years. Caliber Collision has a long-term, triple-net lease with annual increases, guaranteed by corporate.
First Vice President Joe Miller from CBRE represented the buyer, a private investor from Orange County. Executive Vice Presidents Jeff Lefko and Bill Asher of Hanley Investment worked on behalf of the local private seller. Recently, Lefko and Asher were also involved in the $10.4 million sale of a single-tenant retail asset in Fontana, Calif.
Located at 7025 Manya Circle and 170 Hollister St., the two-building asset is less than a mile from Interstate 5 and serves 314,000 people within a 5-mile radius. Completed in 1982 on almost an acre, the property underwent extensive interior and exterior renovations, with solar power installed in 2016.
According to Lefko, the auto repair industry tends to perform better in a recession, as consumers are more likely to repair old cars than purchase new ones. Additionally, the South Bay vacancy rate is at roughly 3.5 percent and the automotive repair industry in North America is projected to grow at a compound annual growth rate of 5.8 percent in the period between 2017 and 2021.