WHITTIER, Calif. – RealEstateRama – Hanley Investment Group Real Estate Advisors, a nationally recognized real estate brokerage and advisory firm specializing in retail property sales, arranged the sale of a brand-new, single-tenant Cardenas Markets in Whittier, California, for $14,810,250, representing a cap rate of 5.03%. Based in Ontario, California, Cardenas Markets is one of the leading Hispanic grocery chains in the country and operates a total of 53 stores under the Cardenas banner and seven stores under the Cardenas Ranch Markets banner. Cardenas’ Whittier store, which opened on July 1, 2020, was the company’s first Los Angeles area location to open.
Hanley Investment Group Executive Vice President Carlos Lopez and Vice President Lee Csenar represented the seller, a private investor based in Hawaii. The buyer, a private investor from Los Angeles County, California, was represented by CBRE Executive Vice President Gary Stache, Director Doug Mack, along with Associate Chris Martin, all located in CBRE’s Newport Beach, California office.
“Within several weeks of formally marketing the property, we had procured five qualified offers and selected a 1031 buyer who opened escrow non-contingent at approximately 99.4% of the list price and closed escrow in three days to achieve the seller’s goal of a year-end closing for tax benefits and estate planning,” said Lopez.
The new 34,642-square-foot Cardenas Market is located at the signalized intersection of Whittier Blvd. (SR 72) and Sorensen Avenue at 11750 Whittier Blvd., on 3.62 acres on the site of a former Stater Bros. The new Cardenas building was a complete remodel completed in 2020.
According to Csenar, Stater Bros. had occupied its space for 20 years before closing in November of 2019, with plans to construct a new store nearby at The Groves, a 75-acre master-planned community with 561 for-sale homes and 189 apartment units along with retail space.
“This is an irreplaceable location in Los Angeles County with a long-term lease and corporate guarantee from a highly desirable ‘daily needs’ tenant that offers a secure and stable investment,” Lopez noted. “There are more than 453,000 people with a household income in excess of $89,000 within five miles of the property. Within 1.5 miles, there are 53,000 Hispanic residents.
Csenar noted that Hispanic buying power is estimated to total $2 trillion by 2024; 25% of all millennials are Hispanic and Hispanic consumers tend to make more frequent trips to the grocery store and bring family members and children, which results in higher spending.
“Single-tenant grocery investments have remained one of the most sought-after as an essential business and daily needs tenant, which is recession-proof and internet-resistant,” said Lopez. “This continued demand represents a flight to safety and security and includes Hispanic markets like Cardenas and El Super, organic markets like Whole Foods and Sprouts, and discount-oriented markets like ALDI, Grocery Outlet and Smart & Final. We expect the demand for these tenants to continue throughout 2021.”
About Hanley Investment Group
Hanley Investment Group Real Estate Advisors is a real estate brokerage and advisory services company with a $7.7 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, sets 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.
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