A private investor paid $8.3 mil for a 6.8k sf, new construction multi-tenant retail pad building in Baldwin Park. The property, located at 13926 Garvey Ave, is occupied by The Coffee Bean & Tea Leaf (with drive-thru), Chipotle, Jersey Mike’s Subs and WaBa Grill. The deal closed at a price of $1,225 per square foot and a cap rate of 4.30%.
Built in late 2017, the freeway-adjacent retail building is situated on 1.29 acres on a pad that is shadow-anchored by LA Fitness at the signalized intersection of Garvey Ave and Vineland Ave. The property is located at the on/offramp to Interstate 10 freeway with average daily traffic counts of 220,000 cars per day and has an 80-foot freeway pylon sign.
Bill Asher and Lee Csenar with Hanley Investment Group Real Estate Advisors represented the seller, a private developer based in Orange County. The buyer was repped by Dennis Earls of Secured Properties.
“There was no shortage of interest in the property due to its outstanding Los Angeles County location, quality of tenants and new long-term leases,” Asher noted. “The property is 100% leased to national and regional quick-service food tenants. Three of the four tenants featured triple-net corporate guaranteed leases including Chipotle (2k sf), The Coffee Bean & Tea Leaf with Drive-Thru (1.8k sf), and WaBa Grill (1.5k sf). The lease for Jersey Mike’s Subs (1.4k sf), a chain with more than 1,500 locations nationwide, is guaranteed by an experienced multi-unit franchisee operator.
“We generated multiple qualified offers and selected an experienced 1031 exchange buyer based in Southern California who had owned other similar assets in his portfolio in the past,” Asher noted. “We secured premium pricing that was 30-60 basis points better regarding cap rate than most of the other offers.”