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 arranged the sale of a 6,402-square-foot multi-tenant retail pad building shadow-anchored by a Save Mart grocery store in Modesto, California. The sale price was $4.11 million.
Hanley Investment Group’s Executive Vice Presidents Jeff Lefko and Bill Asher represented the seller, Covenant Real Estate Group in Henderson, Nevada. The buyer was a private investor based in Elk Grove, California.
“We procured an all-cash, non-1031 exchange buyer based in the area prior to formally marketing the property for sale,” reported Lefko. “We negotiated a timely 15-day due diligence period to secure the deal for the buyer and provide certainty for the seller that the buyer was committed to the purchase to forego formally marketing the property.”
Built in 2018, the three-tenant retail pad building is located on 0.61 acres at 3601 Pelandale Avenue in Modesto. The tenants are Pacific Dental Services (operating as Modesto Smiles Dentistry), Mountain Mike’s Pizza and West Coast Sourdough Deli (which will be opening soon).
Pacific Dental Services® (PDS), one of the country’s leading dental and medical support organizations, has over 900 supported offices in 25 states. PDS provides administrative and business operations support, highly skilled staff, and ongoing training and education to help healthcare providers succeed. PDS has been on the Inc. 5000 list of the fastest-growing private companies in America for the past 13 consecutive years (14 times on the list).
Founded in 1978, Mountain Mike’s Pizza has more than 250 restaurants across California, Oregon, Nevada, Utah, Arizona and Idaho. In addition to offering carryout, its own in-house delivery, and third-party delivery options, Mountain Mike’s provides a family-friendly dine-in environment making it easy for guests to enjoy the brand’s signature experience wherever they are.
West Coast Sourdough started because its founders humbly believe a sandwich is only as good as the bread it comes on. West Coast Sourdough uses the finest sourdough bread, hand-rolled by its artisan bakers in the Bay Area. The company hand-slices its premium meats daily and always uses local produce vendors for daily deliveries. West Coast Sourdough has 46 locations in operation and coming soon in California.
Located in California’s Central Valley, the city of Modesto is the county seat and the largest city in Stanislaus County. Modesto’s population in 2023 is estimated to be 220,968, covering 44.80 square miles, and is ranked the 18th largest city in California and the 104th most populous city in the United States.
Lefko and Asher recently sold a new construction, two-tenant Chipotle Mexican Grill Drive-Thru pad with Roku Sushi at the Freedom Point Plaza in Roseville, California. TopGolf and Living Spaces anchor Freedom Point Plaza.
“Multi-tenant retail pads leased to national and regional tenants, positioned within well-located anchored shopping centers, continue to see consistent demand from buyers in today’s market,” said Lefko. “As market conditions have changed, these types of investments provide investors with a higher-return alternative compared to the single-tenant net-leased sector that provides a secure and diversified income stream.”
Lefko adds, “We expect multi-tenant retail pad sales to see steady activity and velocity during the second half of 2023.”