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 completed the sale of a two-tenant retail building occupied by T.J. Maxx and ULTA Beauty at 78-825 Highway 111 in La Quinta, Calif. The 33,708-square-foot pad building is part of Washington Park Shopping Center, which includes major tenants Target, Lowe’s, Trader Joe’s, ALDI, Stein Mart and Century Theatres. The sale price was $8,862,500.
Hanley Investment Group’s Executive Vice President Bill Asher and company President Ed Hanley represented the seller, a private partnership based in Southern California. The buyer, a private investor from Los Angeles, was represented by Steven Gelber of Gelber Realty Corporation in Los Angeles.
Remodeled in 2016, the building is situated on 3.61 acres within the Washington Park Shopping Center at the signalized intersection of Highway 111 and Simon Drive and immediately surrounded by notable retailers ALDI, Chase Bank, Lowe’s and In-N-Out. T.J. Maxx and ULTA Beauty featured two new corporate-backed long-term leases.
Asher noted the demolition of an older multi-tenant strip center and redevelopment of a new ALDI and In-N-Out at the corner of Highway 111 and Simon Drive tremendously enhanced exposure, identity and visibility of the T.J. Maxx and ULTA Beauty building. Additionally, the City of La Quinta is an extremely affluent resort city with an average household income of more than $99,000, making it one of the highest income cities in the Coachella Valley and an attractive location for corporate retailers.
“The market for single-tenant and quasi-single-tenant assets like the T.J. Maxx and ULTA Beauty in La Quinta remains strong in Southern California,” said Asher. “These types of investments have become a very good alternative for passive investors, especially leased to corporate tenants such as T.J. Maxx and ULTA Beauty, which are two corporate junior-box tenants that are continuing to expand and thrive in an ever-changing retail market of consolidation and right-sizing.”
Asher noted, “T.J. Maxx is S&P rated ‘A+ Stable’ and has the largest market cap of all apparel companies ($52 billion) and consistent annual revenue growth of over 7% year-over-year. ULTA Beauty has achieved seven straight quarters of consecutive revenue growth and a 77% gain in their stock price over the last 12 months.”