6,777 SF Retail Pad Building to LA Fitness Sells for $1,225 psf
BALDWIN PARK, Calif. – (RealEstateRama) — Hanley Investment Group Real Estate Advisors, a nationally-recognized real estate brokerage and advisory firm specializing in retail property sales, announced today that the firm completed the sale of a 6,777-square-foot new construction multi-tenant retail pad building occupied by The Coffee Bean & Tea Leaf (with drive-thru), Chipotle, Jersey Mike’s Subs and WaBa Grill at 13916 Garvey Avenue in Baldwin Park, Calif. The sale price was $8.3 million, representing $1,225 per square foot and a cap rate of 4.30%.
Hanley Investment Group’s Executive Vice President Bill Asher and Vice President Lee Csenar represented the seller, a private developer based in Orange County, Calif. The buyer, a private investor, was represented by Dennis Earls of Secured Properties, both based in Los Angeles, Calif.
Built in late 2017, the freeway-adjacent retail building is situated on 1.29 acres on a pad that is shadow-anchored by LA Fitness at the signalized intersection of Garvey Avenue and Vineland Avenue. The property is located at the on/offramp to Interstate 10 freeway with average daily traffic counts of 220,000 cars per day and has an 80-foot freeway pylon sign.
Asher said, “There was no shortage of interest in the property due to its outstanding Los Angeles County location, quality of tenants and new long-term leases.” The property is 100% leased to national and regional quick-service food tenants. Three of the four tenants featured triple-net corporate guaranteed leases including Chipotle (2,000 sq. ft.), The Coffee Bean & Tea Leaf with Drive-Thru (1,825 sq. ft.), and WaBa Grill (1,500 sq. ft.). The lease for Jersey Mike’s Subs (1,425 sq. ft.), a chain with more than 1,500 locations nationwide, is guaranteed by an experienced multi-unit franchisee operator.
“We generated multiple qualified offers and selected an experienced 1031 exchange buyer based in Southern California who had owned other similar assets in his portfolio in the past,” Asher noted. “We secured premium pricing that was 30-60 basis points better regarding cap rate than most of the other offers.”
Csenar added, “We marketed the property and opened escrow before the tenants opened for business. We achieved record pricing due to the internet-resistant, food-based tenancy that has continued to attract retail investors as the market continues to transition due to the impact of internet retailing.”
About Hanley Investment Group
Hanley Investment Group Real Estate Advisors is a retail investment advisory firm with a $6 billion transaction track record nationwide, who works closely with individual investors, lending institutions, developers, and institutional property owners in every facet of the transaction to ensure that the highest value is achieved. For more information, visit www.hanleyinvestment.com.
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MONAGHAN COMMUNICATIONS, INC.
Bill Asher, Executive Vice President
Hanley Investment Group