FONTANA. 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 has arranged the sale of two multi-tenant retail pad buildings at Highland Village Shopping Center, a new Sprouts-anchored shopping center in Fontana, California. The two buildings, which totaled 13,515 square feet, closed at over $11 million. This transaction marks the eighth property Hanley Investment Group has sold at Highland Village, totaling a combined 61,123 square feet and approximately $40.8 million in total sales.
Hanley Investment Group’s Executive Vice Presidents Kevin Fryman, Bill Asher and Jeff Lefko represented the seller, Adler Realty Investments, who completed the ground-up shopping center development in 2018-2019. The buyer was a private 1031 exchange investor based in Beverly Hills, California and was represented by Mark Stein of CPMC Realty in Palm Desert, California.
“Retail developers continue to capitalize on executing the break-up sale strategy due to the consistent high level of demand from investors seeking new construction single-tenant and multi-tenant pads in today’s market,” said Fryman. “The sales of the two multi-tenant pad buildings at Highland Village were a prime example of matching up a retail investment not formally on the market yet with a specific investor’s acquisition criteria seeking to complete a 1031 exchange. We were able to identify and procure the buyer in an off-market transaction and effectuate a year-end closing to achieve both parties’ objectives.”
The two multi-tenant retail pad buildings are located at 16918-16938 South Highland Avenue on an outparcel to a 30,000-square-foot Sprouts Farmers Market at the hard-corner, signalization intersection of Highland Avenue and Sierra Avenue. The pad tenants include Cafe Rio, Jersey Mike’s Subs, Fatburger, Oggi’s Pizza, AB Barber and Crumbl Cookies. Other tenants at the shopping center include Sit ‘n Sleep, Raising Cane’s Chicken Fingers, Jack in the Box, Pacific Dental, Quick Quack Car Wash and Mountain View Tire & Auto Service. The shopping center is immediately adjacent to the 210 Freeway at the Sierra Avenue entrance/exit.
Hanley Investment Group’s Fryman, Asher and Lefko previously arranged the sale of an 8,400-square-foot Sit ‘n Sleep, a 7,500-square-foot multi-tenant retail shop building adjacent to Sprouts, a Quick Quack Car Wash ground lease; plus the sales of Sprouts, Mountain View Tire & Auto Service, Raising Cane’s and Jack in the Box, each as separate, single-tenant transactions at Highland Village Shopping Center. Hanley Investment Group’s sale of Quick Quack Car Wash was the first single-tenant Quick Quack to sell as a net-leased investment in California.
“We were able to maximize value for the seller through individual sales to private, non-institutional investors in a price range of approximately $2 million to $11 million, a price range that greatly appeals to the largest buyer pool in the retail investment industry,” said Fryman. “Investors recognized that this shopping center and its location and demographics offered long-term security and stability in a continued growth area.”
Fryman added that there are 325,000 people within a five-mile radius and an average household income of $89,000 within a one-mile radius of the shopping center.
“Investor demand for well-located, multi-tenant retail properties leased to nationally and regionally recognized internet-resistant tenants was at unprecedented levels in the second half of 2021,” said Asher. “We expect this demand to continue in 2022, especially as an alternative investment and opportunity to acquire retail at a higher return compared to the highly compressed cap rates found in the single-tenant market.”
About Hanley Investment Group
Hanley Investment Group Real Estate Advisors is a real estate brokerage and advisory services company with a $9 billion transaction track record that specializes in the sale of retail properties nationwide. Our expertise, proven track record, and unwavering dedication to putting clients’ needs first set us apart in the industry. Hanley Investment Group creates value by delivering exceptional results through the use of property-specific marketing strategies, cutting-edge technology, and local market knowledge. Our nationwide relationships with investors, developers, institutions, franchisees, brokers, and 1031 exchange buyers are unparalleled in the industry, translating into maximum exposure and pricing for each property. With unmatched service, Hanley Investment Group has redefined the experience of selling retail investment properties. For more information, visit www.hanleyinvestment.com.
# # #
MONAGHAN COMMUNICATIONS, INC.
830.997.0963 | 949.677.2933 cell