A brand-new, single-tenant Cardenas Market in Whittier sold for $14.8 mil, representing a cap rate of 5.03%. The 34.6k sf ($428/sf) Cardenas Market is located at 11750 Whittier Blvd, at the signalized intersection of Whittier Blvd and Sorensen Ave.
The store sits on 3.62 acres on the site of a former Stater Bros. The new Cardenas building was a complete remodel completed in 2020.
Based in Ontario, Cardenas Markets is one of the leading Hispanic grocery chains in the country and operates a total of 53 stores under the Cardenas banner and seven stores under the Cardenas Ranch Markets banner. Cardenas’ Whittier store, which opened on July 1, 2020, was the company’s first Los Angeles area location to open.
Carlos Lopez and Lee Csenar with Hanley Investment Group Real Estate Advisors represented the seller, a private investor based in Hawaii. The buyer, an L.A. area 1031 exchange investor who opened escrow non-contingent at approximately 99.4% of the list price, was repped by CBRE’s Gary Stache, Doug Mack and Chris Martin.
According to Csenar, Stater Bros. had occupied its space for 20 years before closing in November of 2019, with plans to construct a new store nearby at The Groves, a 75-acre master-planned community with 561 for-sale homes and 189 apartment units along with retail space.
“This is an irreplaceable location in Los Angeles County with a long-term lease and corporate guarantee from a highly desirable ‘daily needs’ tenant that offers a secure and stable investment,” Lopez noted. “There are more than 453,000 people with a household income in excess of $89,000 within five miles of the property. Within 1.5 miles, there are 53,000 Hispanic residents.
Csenar noted that Hispanic buying power is estimated to total $2 tril by 2024; 25% of all millennials are Hispanic and Hispanic consumers tend to make more frequent trips to the grocery store and bring family members and children, which results in higher spending.
“Single-tenant grocery investments have remained one of the most sought-after as an essential business and daily needs tenant, which is recession-proof and internet-resistant,” said Lopez. “This continued demand represents a flight to safety and security and includes Hispanic markets like Cardenas and El Super, organic markets like Whole Foods and Sprouts, and discount-oriented markets like ALDI, Grocery Outlet and Smart & Final. We expect the demand for these tenants to continue throughout 2021.”