Hanley Investment Group Negotiates Sale of Multi-Tenant Retail Pad, Shadow-Anchored by New Walmart Supercenter in Hesperia for $8.5 Million, Yielding Record-Low Cap Rate

HESPERIA, 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 represented the buyer and seller in the off-market sale of a 13,940-square-foot multi-tenant retail pad, shadow-anchored by a new Walmart Supercenter at 13325 Main Street in Hesperia, Calif. The sale price was $8.5 million, yielding a cap rate of 5.33 percent. The transaction represents a record-low cap rate for a fully-leased multi-tenant retail pad over 10,000 square feet in the Inland Empire since 2008, according to CoStar.

[ecko_quote source=”Eric Wohl”]Multi-tenant outparcels to big box retail is a product type that is in very high demand,” This type of retail asset is a relatively low-risk option for investors due to the high-exposure location, diversity of corporate and regional tenants, and a strong traffic-driving anchor like Walmart. [/ecko_quote]

Hanley Investment Group Executive Vice President Eric Wohl represented the seller, Pacific Development Group of Newport Beach, Calif.  Hanley’s Senior Vice President Patrick Kent represented the buyer, SHA Enterprises, Inc. of Irvine, Calif.

The retail property is located in San Bernardino County at the Hesperia Marketplace Shopping Center at the hard-corner signalized intersection of Main Street and Escondido Avenue in Hesperia, near the Interstate 15 freeway. Built in 2015, the multi-tenant building is occupied by national and regional tenants including Pieology Pizzeria, The Habit Burger Grill, Firehouse Subs, Yogurtland, Great Clips, Nutrishop and Metro PCS. The Walmart Supercenter-anchored shopping center also includes a 10,000-square-foot Petco.

“Utilizing Hanley Investment Group’s weekly strategy meeting, we leveraged our long-standing relationship with Pacific Development Group to connect a motivated 1031 exchange buyer with an off-market listing to fulfill the requirement,” said Wohl. “We were also able to facilitate a new corporate lease with Daniel’s Jewelers prior to closing to bring the property to 100 percent occupancy.”

According to Kent, “The buyer closed escrow in 45 days without requiring a financing contingency.” Kent also said that having Walmart and Petco as anchors, the hard-corner, signalized intersection location, proximity to the I-15 freeway, and that 91 percent of the building’s space was occupied by credit tenants were all factors that made this property very appealing to the buyer.

Wohl recently completed the sale of a similar Walmart shadow-anchored asset in Ontario, Calif., on behalf of Pacific Development Group. The multi-tenant retail pad sale in Ontario achieved a record-low cap rate and the highest price per square foot for a multi-tenant pad building shadow-anchored by Walmart in California, according to CoStar.

“This is the second property that Hanley Investment Group has sold for us within a 30-day period,” said Bob Lewis, partner at Pacific Development Group who handled the sale for the firm. “We were not motivated to sell the property; however, based upon the value they assured us they could achieve, the strength of the buyer that they represented and the success we have had with Hanley Investments in selling our properties, we decided to move forward with the transaction.”

“Multi-tenant outparcels to big box retail is a product type that is in very high demand,” said Wohl. “This type of retail asset is a relatively low-risk option for investors due to the high-exposure location, diversity of corporate and regional tenants, and a strong traffic-driving anchor like Walmart. Additionally, investors can typically spread out their risk over multiple tenants versus single-tenant assets.”

About Pacific Development Group

Founded in 1980, Pacific Development Group and its partners currently own and manage over three million square feet of commercial buildings with approximately 600 tenants with a value in excess of one billion dollars. These properties are located throughout California and consist primarily of major tenant-anchored shopping centers. The company is actively pursuing development opportunities. See www.pdgcenters.com

About Hanley Investment Group

Hanley Investment Group Real Estate Advisors is a retail investment advisory firm with a $5 billion transaction track record nationwide, who works closely with individual investors, lending institutions, developers, and institutional property owners in every facet of the transaction to ensure that the highest value is achieved. For more information, visit www.hanleyinvestment.com