Southern California Retail Assets in High Demand
- Jul 30, 2015
By Adriana Pop, Associate Editor
Two multi-tenant retail investment properties in Riverside County, Calif. recently changed hands.
In Moreno Valley, Hanley Investment Group facilitated the sale of a two-tenant retail building occupied by a newly-opened 24,385-square-foot Smart & Final Extra!, and a 14,883-square-foot Dollar Tree at 25050 Alessandro Blvd. The building, which is located on 3.67 acres and totals 39,268 square feet, is part of a CVS/pharmacy-anchored shopping center.
At the time of sale, the property was completely occupied and featured an initial ten-year NNN lease with Dollar Tree that had nine years remaining. Smart & Final opened for business shortly before the property closed escrow with a new 15-year NNN lease.
The purchase price was $7.09 million, reflecting a cap rate of 5.75 percent. Hanley and Asher represented the seller, Brad Becker, who is a principal at Becker Properties based in Encinitas, Calif. The buyer, GBF Investment LLC based in Pomona, Calif., was represented by Bob Bonanomi of CBRE in Universal City, Calif.
“We secured an all-cash buyer in the first week of marketing after generating multiple offers showing the continued high demand for well-located retail investments in greater southern California leased to credit tenants with long-term leases,” said Asher in prepared remarks.
Additionally, Hanley Investment Group brokered the sale of a two-tenant retail building occupied by a 3,940-square-foot Coast Dental office and a 2,500-square-foot TitleMax at 12252 Perris Blvd. in Moreno Valley.
The freestanding 6,440-square-foot building, which spreads across 30 acres of land, is part of a shopping center at the intersection of Perris Boulevard and Hemlock Avenue which includes CVS/pharmacy, dd’s Discounts, Bank of America and Dollar Tree among its tenants.
Hanley and Asher represented the seller, MV-Perris LLC—a subsidiary of FHC Inc. based in Newport Beach, Calif.—, while the buyer, TC Enterprise Group, LLC in Pasadena, Calif., was represented by Charles Wong of CCRE Capital Commercial, Inc. of Irvine, Calif.
The property sold for $3.32 million, which marks a record per square foot price for a multi-tenant strip center in Moreno Valley.
Images via Hanley Investment Group