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Hanley Investment Group Sells Single-Tenant Cardenas Markets in Southern California for Record-Low Cap Rate

Cardenas Markets_San Bernardino

SAN BERNARDINO, 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 arranged the sale of a single-tenant net-leased investment occupied by Cardenas Markets. The 43,360-square-foot building is located within the fully leased Sterling Plaza shopping center in San Bernardino, California. The sale price was $8,230,000, representing a record-low cap rate for a single-tenant Cardenas Markets nationwide.

Hanley Investment Group’s Executive Vice President Eric Wohl and Associate CJ Kiehler represented the seller, a local developer based in Newport Beach, California. The buyer, a private investor based in Corona, California, was represented by Ranhee Im, president of ANA Capital in Los Angeles, California.

“We generated 16 qualified offers and secured a 1031 exchange buyer who exceeded the asking price,” said Wohl. “The property sold for a 4.74% cap rate, a record-low cap rate for a single-tenant Cardenas Markets in the U.S.”

According to Wohl, “Cardenas has excellent store sales and a long-term, corporate lease with attractive rental increases that appealed to many investors. Additional factors included its strategic location, favorable demographics, below-market rent and significantly below today’s replacement cost.”

Wohl adds, “Cardenas spent approximately $4 million on improving the site, demonstrating a long-term commitment to the location.”

Cardenas is one of the largest Hispanic supermarket chains in the country, with 59 locations across California, Arizona and Nevada. In 2016, KKR, a New York City-based global investment firm and Victory Park Capital, a Chicago-based private equity firm, purchased Cardenas Markets.”

Built in 1988 and renovated in 2018, the Cardenas Markets building is located on 3.31 acres at 2045 E. Highland Avenue, adjacent Planet Fitness in the Sterling Plaza shopping center. Sterling Plaza is situated at the signalized intersection of Highland Avenue and Sterling Avenue, a highly trafficked signalized intersection with an average of 33,700 cars per day. The property is just one block from the on/off ramps of Foothill Freeway/State Route 210, which has approximately 94,000 cars per day.

Cardenas Markets benefits from the strong Southern California demographics favorable for a Hispanic grocer. “There are over 134,000 residents within a three-mile radius of the subject property, with 62% Hispanic population. The Hispanic buying power is estimated to be $2 trillion by 2024,” Wohl noted.

In addition to Cardenas Markets and Planet Fitness, Sterling Plaza includes Starbucks and Wendy’s drive-thrus, O’Reilly Auto Parts, Bank of America, KFC, and more. Nearby credit tenants include Rite Aid, 99 Cents Only, Food 4 Less, Stater Bros. Markets, CVS Pharmacy, Walgreens, Harbor Freight Tools, Big Lots, Big 5 Sporting Goods, AutoZone, Del Taco, El Pollo Loco, and others.

The newly remodeled Yaamava’ Resort & Casino is located only two miles from Sterling Plaza. It is reported to be the largest casino in California with 432 rooms, 6,500 slot machines, 135 table games, 38 poker tables, five high-limit rooms, and a 2,800-seat entertainment venue.

“There is still a significant amount of private capital and aggressive 1031 exchange buyers in the market and not enough high-quality retail properties to satisfy the unprecedented demand, which is continuing to keep cap rates near all-time lows,” Wohl noted. “We expect that new construction, single-tenant net-leased properties with a long-term lease from a national or strong regional credit tenant will continue to attract multiple offers from eager investors looking for a safe haven.”

About Hanley Investment Group 
Hanley Investment Group Real Estate Advisors is a real estate brokerage and advisory services company with over a $9.1 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

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