Multiple all-cash offers within first week of marketing is evidence of continued demand for well-located single-tenant retail assets
CORONA DEL MAR, 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 Senior Vice President Jeremy McChesney completed the sale of a brand new construction single-tenant absolute triple-net Black Bear Diner in Orange County, Calif. The purchase price was $3,295,000, representing a 4.40% cap rate.
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McChesney represented the seller, Tropical Holdings, LLC and Ruffin Tech Center, Ltd. of Hermosa Beach, Calif. Peter Deltondo of Marcus Millichap of Irvine, Calif., represented the buyer, a private investor from Rowland Heights, Calif.
Built in 2016, the 5,506-square-foot Black Bear Diner restaurant is located on .71 acres at the southeast corner of Beach Boulevard and Fashion Square Lane, 1000 S. Beach Boulevard, in La Habra. Traffic along Beach Boulevard is in excess of 45,000 cars per day, according to McChesney.
The property shares Fashion Square Lane access with the adjacent Regal Cinema-anchored La Habra Market Place neighborhood center. Across the street from Black Bear Diner, Fairfield Development is under construction on a 335-unit luxury apartment complex, which is expected to be completed in 2017.
“This is a trophy Orange County, signalized hard-corner location with over 460,000 people residing within five-miles of the property with an average household income in excess of $88,000,” said McChesney. “We were able to generate multiple all-cash offers to purchase the property within the first week of marketing and negotiated a short 30-day escrow with a large non-refundable deposit working with the all-cash exchange buyer from Rowland Heights.”
The Black Bear Diner ground lease, which is corporate guaranteed, is for 10 years and features 10% rental escalations every five years.
Black Bear Diner, founded in 1995, is a fast growing, community-oriented, family dining concept that offers a one-of-a-kind experience in a fun, bear-themed atmosphere. Ranked in the top 200 chains by Franchise Times and a top franchise opportunity by Franchise Business Review, Black Bear Diner was born from a desire to bring home-style comfort food classics and personal service back to the dining experience. The company currently has 78 locations spread across eight western states, and has a goal of 100 units by 2018.
“Investor response continues to demonstrate the strong demand for well-located, credit worthy single-tenant triple-net retail investments in today’s market,” McChesney noted.
About Hanley Investment Group
Hanley Investment Group Real Estate Advisors is a retail investment advisory firm with a $5 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.