Well-located NNN Leased Retail Continues to Be in High Demand
CORONA DEL MAR, CALIF. – July 29, 2015 – (RealEstateRama) — Hanley Investment Group Real Estate Advisors, a nationally-recognized real estate brokerage and advisory firm specializing in retail property sales, is pleased to announce that Hanley Investment Group President Ed Hanley and Executive Vice President Bill Asher have negotiated the sale of two multi-tenant retail investment properties in Riverside County, Calif., totaling more than $10,413,000.
In Moreno Valley, Hanley Investment Group completed 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 Boulevard in a CVS/pharmacy-anchored shopping center. Located on 3.67 acres, the inline building totals 39,268 square feet. The property was 100% occupied at time of sale 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 seller, represented by Hanley and Asher, was Brad Becker, 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. The purchase price was $7,088,000, which represented a cap rate of 5.75 percent.
According to Asher, “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. We procured a highly qualified buyer and negotiated a mutually beneficial closing timeframe prior to the new Smart & Final’s formal rent commencement date. The structure maximized value for the seller, while efficiently and effectively fulfilling the buyer’s acquisition requirement.”
Also, in Moreno Valley, Hanley Investment Group completed 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 Boulevard. Located on .30 acres, the freestanding 6,440-square-foot pad building is located in a shopping center that includes CVS/pharmacy, dd’s Discounts, Bank of America and Dollar Tree and is situated at the hard corner signalized intersection of Perris Boulevard and Hemlock Avenue. The purchase price was $3,325,000, representing $507 per square feet. The seller, represented by Hanley and Asher, was MV-Perris, LLC, a subsidiary of FHC Inc. based in Newport Beach, Calif. The buyer, TC Enterprise Group, LLC in Pasadena, Calif., was represented by Charles Wong of CCRE Capital Commercial, Inc. of Irvine, Calif.
“We negotiated a seven-day due diligence period and successfully closed escrow 20 days after execution of the Purchase and Sale Agreement with an all-cash buyer,” said Asher. “It provided the seller with a firm commitment from the buyer in a short period of time, while giving the buyer the certainty that they had secured a property for their 1031 exchange early in their identification process.”
Asher notes it was a record price per square foot sale for a multi-tenant strip center in Moreno Valley. The property is situated in a primary corridor with neighboring retailers that include Walgreens, McDonald’ s, Food 4 Less and O’ Reilly Auto Parts.
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.