Hanley Investment Group Arranges Sales of Multi-Tenant Retail Building and Single-Tenant Quick Quack Express Car Wash at Sprouts-Anchored Shopping Center for $7.6 Million in Fontana, Calif.
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 arranged the sale of a new construction, multi-tenant retail shop building adjacent to Sprouts Farmers Market and a new Quick Quack Car Wash ground lease at the Highland Village Shopping Center in Fontana, California.
Hanley Investment Group’s Executive Vice Presidents Kevin Fryman, Bill Asher, Matt Burnett and Jeff Lefko arranged the sales in the transactions. The combined purchase price for the two properties was $7,575,000. Adler Realty Investments recently completed the ground-up shopping center development in 2018-2019, which is anchored by a 30,000-square-foot Sprouts Farmers Market and includes Jack in the Box, Raising Cane’s Chicken Fingers, Jersey Mike’s, Cafe Rio, Oggi’s Restaurant and Mountain View Tire & Auto Service. The property is immediately adjacent to the 210 Freeway at the Sierra Avenue entrance/exit.
The sale of the new 7,500-square-foot, multi-tenant shop building consisted of three tenants, which was constructed in 2018 and features Pacific Dental Services-branded dentistry office, Arrowhead Credit Union and MJ Nail & Spa. The building is located at 16914 South Highland Avenue in Fontana and sold for $4,950,000. Hanley Investment Group’s Fryman, Asher and Lefko represented the seller and developer, Adler Realty Investments, Inc., based in Woodland Hills. The buyer was a private investor from Sun Valley, Calif. represented by Matt Burnett at Hanley Investment Group.
“Newly constructed multi-tenant retail assets with two to five tenants continue to be highly sought-after investments in today’s market as an alternative to lower yield single-tenant investments,” said Fryman. “Based on the timing of this particular transaction, we were able to timely navigate the circumstances of COVID-19 and structure a closing that was mutually beneficial for both buyer and seller.”
“We secured a well-located stabilized investment leased to three serviced-based, internet resistant tenants, to satisfy the buyer’s 1031 exchange,” Burnett said. “The multi-tenant shop building is well-positioned for long term success. It has excellent identity and visibility from Sierra Avenue and the 210 Freeway and is immediately adjacent to the only Sprouts within a seven-mile radius.”
Additionally, Hanley Investment Group’s Fryman, Asher and Lefko arranged the sale of a brand-new Quick Quack Express Car Wash ground lease located at 16988 S. Highland Avenue in Fontana. The property is situated on 0.77 acres and includes a 3,590-square-foot building. Quick Quack Car Wash opened in March 2020. The buyer was a private investor from Korea and was represented by Mark Hong of Korus Real Estate, Inc., based in Los Angeles. The purchase price was $2,625,000 representing a 5.33% cap rate, a record-low nationwide for a new Quick Quack net-leased express car wash.
“We generated multiple competitive and qualified offers and closed escrow at 98% of the asking price,” said Fryman. “We successfully executed a pre-sale marketing strategy and secured a non-1031 exchange buyer prior to completion of construction and facilitated a longer escrow to meet both the buyer and seller’s investment goals.”
Asher added, “The sale represents the first single-tenant Quick Quack to sell as a net-leased investment in California. Single-tenant net-leased express car washes have become an increasingly popular investment in today’s market and an attractive alternative at a higher return compared to other net-leased assets such as drive-thru fast food, banks or coffee investments.”
Asher noted that Hanley Investment Group has been one of the most active brokerage companies in the sales of single-tenant net-leased express car washes with 30 sales valued at $120 million in the last 24 months.
In 2019, Hanley Investment Group’s Fryman, Asher and Lefko arranged the sales of Sprouts, Mountain View Tire & Auto Service, Raising Cane’s and Jack in the Box, each as separate, single-tenant transactions at Highland Village Shopping Center.
Hanley Investment Group is currently marketing for sale a new single-tenant Sit ‘n Sleep located at 16984 S. Highland Avenue, next to Sprouts within Highland Village Shopping Center. The 8,400-square-foot building, built in 2018, is listed for sale for $3,730,000. Sit ‘n Sleep is one of the most popular mattress retailers in Southern California with 38 superstore locations across the region. The Orange County Register in 2018 rated Sit ‘n Sleep the #1 Best Mattress Store.