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11/11/16
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A 13.9k sf, multi-tenant retail pad, shadow-anchored by a new Walmart Supercenter, in Hesperia, sold for $8.5 mil, or just over $600/sf. The property traded at a cap rate of 5.33% in an off-market transaction which represents a record-low cap rate for a fully-leased multi-tenant retail pad over 10k sf in the Inland Empire since 2008, according to CoStar.
The retail property is located at 13325 Main St, at the Hesperia Marketplace Shopping Center. It is situated at the hard-corner signalized intersection of Main St and Escondido Ave in Hesperia, near the I-15 Fwy. 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 10k sf Petco.
Eric Wohl with Hanley Investment Group represented the seller, Pacific Development Group of Newport Beach. Patrick Kent, also with Hanley, repped the 1031 exchange buyer, SHA Enterprises Inc of Irvine. Hanley was able to secure 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.
“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.”
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