Single Tenant Enterprise-Rent-A-Car in the Inland Empire Sells for Over $600/sf
An Alhambra-based private investor paid $1.52 mil for a 2.3k sf, single-tenant absolute net-leased Enterprise Rent-A-Car property in the Inland Empire city of Redlands. The deal came in at a cap rate of 5.55% and a price of $626/sf.
The single-tenant building was built in 1984 on .70 acres at the signalized hard-corner intersection at the northwest corner of Industrial Park Ave and Colton Ave, just off California Highway 10. The building, which is located at 1325 Industrial Park Ave, is a former Long John Silver’s restaurant that is currently being converted into an Enterprise-Rent-A-Car.
Enterprise Rent-A-Car signed a 10-year corporate-backed absolute triple-net lease with two five-year options with annual CPI Increases. The tenant is responsible for property taxes, insurance, common area maintenance, repairs and maintenance, roof and structure.
Jeremy McChesney with Hanley Investment Group Real Estate Advisors represented the seller, Equitas Investments, based in Hermosa Beach. The buyer was repped by Hai Luong of Maxwell Realty Inc.
According to McChesney, Enterprise Rent-A-Car will be relocating from its location across the street and is slated to open in the first quarter of 2017. Enterprise has been successfully operating there since the 1980s. Enterprise is the largest rental car company in the United States with over 7,200 locations.
“We generated six offers within the first few two weeks of marketing the property, and negotiated a short 21-day inspection period and 30-day closing on behalf of the seller,” said McChesney. “We closed with an all-cash buyer based in Southern California at a very aggressive 5.53% closing cap rate for an Enterprise Rent-A-Car property with an early termination clause allowing the tenant to cancel the lease after five years.”
Redlands is located in San Bernardino County, just 36 square miles southeast of the city of San Bernardino, west of Yucaipa. The city is located approximately 10 miles from downtown San Bernardino, and roughly 60 miles east of downtown Los Angeles.
The property draws from the over 77,000 residents within three miles of the property with household incomes in excess of $79k helping to ensure the long-term viability of this location. Retailers and restaurants in the immediate trade area include Chevrolet, Nissan, Auto Mobile Club, CVS/pharmacy, Big Lots, Burlington Coat Factory, Lumber Liquidators, Taco Bell, Arby’s, El Pollo Loco, Coco’s Bakery, and Papa John’s Pizza, amongst others.