Inland Empire Retail Property Sells for $2.3 Million in Riverside
Inland Empire Retail Property Sells for $2.3 Million, 4.52 Percent Cap Rate
Riverside, Calif. – Hanley Investment Group Real Estate Advisors, announced that the firm has arranged the sale of a two-tenant retail property occupied by a brand-new single-tenant Jack in the Box with a drive-thru and a Verizon cell tower at 1115 W. La Cadena Drive in Riverside, Calif., positioned immediately off the I-215 freeway at the Columbia Avenue on/off ramp. The sale price was $2.3 million, representing a 4.52 percent cap rate.
Hanley Investment Group Senior Associate Austin Blodgett and Executive Vice President Eric Wohl represented the seller, Greens Capital Ventures, LLC, an affiliate of Irvine, Calif.-based Greens Group, Inc. The buyer, a private investor from Los Angeles, was represented by Allen Park of Packo Investments.
Built in 2018, the single-tenant, 1,869-square-foot Jack in the Box building sits on a 0.49-acre lot and includes a Verizon cell tower. This Jack in the Box is the company’s newest prototype design and is on an absolute NNN 20-year ground lease. This location is operated by the second largest Jack in the Box franchisee in the U.S., Feast Enterprises with 225+ locations.
“It was a challenge to get a buyer comfortable with the purchase of the Verizon Cell tower along with the Jack in the Box in the 4 percent cap rate range,” said Blodgett. “We had a lot of buyers that would get into the low 4 percent range on the Jack in the Box alone as a single-tenant deal, but as a two-tenant deal, everyone wanted to be in the 5 percent range.”
Blodgett continues, “Verizon Wireless is on a corporate lease and recently completed multiple renovations to the cell tower showing their long-term commitment to the site, which is ultimately what got this buyer comfortable to move forward.”
The property offers excellent accessibility, identity, and visibility along the I-215 freeway, according to Wohl. “This is an irreplaceable real estate with outstanding exposure to the I-215 freeway and near the 60 freeway,” Wohl continues. “The I-215 freeway is the major north/south thoroughfare running from San Bernardino to Murrieta and has average daily traffic counts that exceed 155,000.”
There is a brand-new retail development located directly across from the Jack in the Box property. Tenants include Del Taco and 7-Eleven with a gas station.
“The Inland Empire is booming with development, over 19 million square feet of industrial real estate is currently under construction which will ultimately draw many more people to the area to work and live. Because of this massive growth in the immediate trade area, we got a ton of activity on this property from the beginning, mostly from Los Angeles-based investors looking to move their money elsewhere in Southern California,” said Blodgett. “Riverside County has over 1.5 million residents that are expected to move into Riverside in the next 45 years (largest projected population growth in California) and unemployment is at a century-low rate of 4.1 percent (350,000 jobs were added in the last nine years).”
Blodgett and Wohl expect that cap rates will remain steady for single- and two-tenant net-lease retail assets in the Inland Empire as investors look for high-quality investments with little to no maintenance requirements.
About Hanley Investment Group
Hanley Investment Group Real Estate Advisors is a retail investment advisory firm with a $6+ 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.