YUBA CITY, 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 completed the sale of a new-construction, two-tenant, retail pad building occupied by Dunkin’ Drive-Thru and T-Mobile at a FoodMaxx grocery-anchored shopping center in the Sacramento metro area. The sale price was $2,740,000, representing a 5.25% cap rate, the lowest cap rate for a two-tenant pad in the Sacramento and Yuba/Sutter metro areas.
Hanley Investment Group Executive Vice Presidents Jeff Lefko and Bill Asher, along with Greg Aguirre, president of Capital Rivers Commercial in Sacramento, California, represented the seller, a private investor based in Sacramento. The buyer, a private investor from Redwood City, California, was represented by Nigel Keep of Kidder Mathews in San Jose, California.
Capital Rivers Commercial developed, on behalf of the seller, the newly renovated 3,466 square-foot freestanding pad building, which was completed in 2018, sits on 0.39 acres at 1040 Colusa Avenue in Yuba City, California, at the signalized intersection of two major highways, Highway 99 and Highway 20 (Colusa Avenue), with over 60,000 cars per day. The property is an outparcel to Sutter Crossroads shopping center which includes FoodMaxx, Big 5 Sporting Goods, Goodwill, El Pollo Loco and Red Robin. The property is also located across the street from Yuba Sutter Mall, a 408,000-square-foot regional mall anchored by JCPenney, Sears, Ross and Planet Fitness.
“The development of the project required some creative solutions including the conversion of the former bank vault into the walk-in cooler for Dunkin’ and making the drive-thru large enough to accommodate full-size trucks, which are common in the Yuba City market. We are very proud of the final result,” said Aguirre.
“The property is located at one of the best-signalized intersections in the entire market; Colusa Avenue is the primary regional retail corridor in the trade area, and this is the only Dunkin’ Drive-Thru in nearly 40 miles,” Lefko noted. Other national and regional retailers along Colusa Avenue include 99 Cent Only Stores, Chipotle, Harbor Freight Tools, Jack in the Box, McDonald’s, Panera Bread, PetSmart, Pizza Hut, Staples, Walgreens and Wells Fargo. Yuba City is located approximately 40 miles north of Sacramento in Sutter County.
“Approximately 60% to 70% of all business for quick-service restaurants come through the drive-thru,” said Asher. “Time-pressed consumers are looking for convenience and eating and drinking on the run has become commonplace. Average store sales are approximately 50% greater in locations that have a drive-thru.”
Dunkin’ Drive-Thru occupies 2,260 square feet and T-Mobile occupies 1,206 square feet. Both Dunkin’ and T-Mobile have new long-term triple-net leases with 10% increases every five years.
“We procured an all-cash, full-price offer from a northern California-based buyer and closed approximately 30 days after opening escrow,” said Lefko.
The property enjoys the benefits of the high-growth demographics with over 108,000 residents within a five-mile radius of the property. “The area experienced a 23% population growth from 2000 to 2018 within a five-mile radius of the property and it is projected to increase an additional 4.3% over the next five years,” said Asher. “The average household income in Yuba City is projected to increase by 15% by 2023.”
Dunkin’ was founded in 1950 in Quincy, Massachusetts, and just five years later, a franchise legacy was born. Today, Dunkin’ is the world’s leading baked goods and coffee chain, serving more than three million customers every day. True to its name, Dunkin offers 70+ varieties of donuts, but you can also enjoy dozens of premium beverages, bagels, breakfast sandwiches and other baked goods. Dunkin’ has earned the #1 ranking for customer loyalty in the coffee category for 13 straight years in the U.S.
Based in Canton, Massachusetts, Dunkin’ is part of the Dunkin’ Brands Group, Inc. (Nasdaq: DNKN<https://www.prnewswire.com/news-releases/dunkin-kicks-off-strong-year-with-50-new-locations-planned-for-development-under-newly-signed-store-development-agreements-300845884.html#financial-modal>) family of companies. At the end of the second quarter of 2019, Dunkin’ Brands’ 100% franchised business model included over 13,000 Dunkin’ restaurants and more than 8,000 Baskin-Robbins restaurants<https://www.prnewswire.com/news-releases/dunkin-announces-plans-for-18-new-restaurants-including-ten-multi-brand-locations-with-baskin-robbins-in-the-houston-area-300952566.html>. According to a company press release<https://www.prnewswire.com/news-releases/dunkin-kicks-off-strong-year-with-50-new-locations-planned-for-development-under-newly-signed-store-development-agreements-300845884.html>, Dunkin’ has plans to add 200-250 net new restaurants each year over the next three years in the U.S., with 90% of these openings taking place outside the Northeast.
T-Mobile US, Inc. (Nasdaq: TMUS), commonly shortened to T-Mobile, is a United States-based wireless network operator whose majority shareholder is the German telecommunications company Deutsche Telekom (DT). T-Mobile is the third-largest wireless carrier in the United States, with 84.2 million customers and service revenues of $8.6 billion as of the end of the third quarter of 2019<https://investor.t-mobile.com/news-and-events/t-mobile-us-press-releases/press-release-details/2019/T-Mobile-Maintains-Unprecedented-Momentum-in-Q3-and-Sets-the-Stage-for-the-First-Nationwide-5G-Network-Launch-in-2019/default.aspx>. The total full-year 2018 revenues were $43.3 billion. Based in Bellevue, Washington, T-Mobile US provides services through its subsidiaries and operates its flagship brands, T-Mobile and Metro by T-Mobile.<https://www.t-mobile.com/content/t-mobile/corporate/news/media-library/details.html/content/dam/t-mobile/corporate/media-library/public/documents/TMUS-Fact-Sheet-11042019.pdf?a=b>
About Capital Rivers Commercial
Capital Rivers is a full-service commercial development and brokerage firm consisting of a team of specialized experts that approach each project with integrity, adaptability, ownership, passion and fun. For more information, visit www.capitalrivers.com<http://www.capitalrivers.com>
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<http://www.hanleyinvestment.com/>.
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MONAGHAN COMMUNICATIONS, INC.