Hanley Investment Group Real Estate Advisors, a nationally recognized real estate brokerage and advisory firm specializing in the sale of retail properties, announced today that the firm completed the sale of a new multi-tenant retail investment leased to Altura Credit Union and Little Caesars Drive-Thru in Perris, California. The property is located on an outparcel to a Cardenas Markets anchored shopping center, near the Interstate 215 on/off-ramps. The sale price was $4.05 million.
Hanley Investment Group’s Executive Vice Presidents Bill Asher and Jeff Lefko represented the seller, a private partnership from Orange County, California. The buyer, a local family office from Riverside County, California, was represented by Howard Rosenthal and Guy Excell of Rosenthal & Excell Commercial Real Estate in Hemet, California.
“We procured an all-cash 1031 exchange buyer through a broker relationship in an off-market transaction,” says Asher. “The purchase fulfilled the buyer’s specific exchange criteria, and we closed escrow at premium pricing based on today’s market conditions, which met the seller’s expectations.”
Headquartered in Riverside County, Altura Credit Union is a not-for-profit company and member-owned credit union in Southern California with 21 locations.
Little Caesars was founded by Mike and Marian Ilitch in 1959 as a single, family-owned restaurant. Headquartered in Detroit, Michigan, Little Caesars is now the third-largest pizza chain in the world, with stores in each of the 50 U.S. states and 27 countries and territories.
Built in 2022, the 5,303-square-foot two-tenant building occupied by Altura Credit Union and Little Caesars is situated on 1.005 acres at 2570 North Perris Boulevard in Perris in the Cardenas Markets-anchored shopping center, near the Interstate 215 (±103,000 cars per day), between the Nuevo Road (±27,000 cars per day) and Ramona Expressway (±16,000 cars per day) freeway on/off-ramps.
The shopping center was recently redeveloped to accommodate new tenants Fitness 19, WSS and Harbor Freight Tools in the former Walmart building. Other tenants in the shopping center include Dollar Tree, Wells Fargo, Taco Bell, KFC, Domino’s, T-Mobile, Gentle Dental and others.
Last year, in mid-May, Hanley Investment Group and Progressive Real Estate Partners represented the same developer and seller in the sale of a brand-new KFC Drive-Thru at the shopping center. The sale price was $3.75 million representing a cap rate of 3.65% and $1,706.82 per square foot. The closing cap rate of 3.65% represented a record-low cap rate for a single-tenant KFC in the Inland Empire.
Known as an industrial hub, Perris has more than 46 million square feet of existing distribution centers (with 13 million square feet planned or under construction), including national companies such as Amazon, The Home Depot, Lowe’s, O’Reilly Auto Parts, Proctor & Gamble, Sketchers, Ross Dress for Less, Walgreens and more.
“The dense industrial activity combined with the property’s location on Perris Boulevard, its proximity to the freeway, synergy with other retailers, and the area’s strong and growing demographics, create the ideal environment for the property’s long-term success,” notes Asher. Within five miles of the property, there are 126,719 people with an average household income of $72,459.
“Newly constructed multi-tenant retail pads with drive-thrus, leased to national and regional credit tenants, continue to have steady demand from investors in today’s market,” says Asher. “They offer higher returns and a diversified income stream compared to similar, lower return single-tenant stabilized investments.”