|A new, 2.6k sf single-tenant retail property in Barstow sold for $2.6 mil, or $1,000/sf. The property, occupied by Dunkin’ (formerly known as Dunkin’ Donuts) and Baskin-Robbins, includes a drive-thru window.
Located midway between Los Angeles and Las Vegas, the 0.68-acre property is located at 2804 Lenwood Rd in Barstow, off I-15 freeway (58,000 cars per day) and adjacent The Outlets at Barstow, a popular regional destination. Two million shoppers and 13,000 tour buses annually visit The Outlets at Barstow, which includes a variety of national brands such as Banana Republic, Calvin Klein, Coach, Guess, Kate Spade, Lacoste, Michael Kors, Nike, Old Navy and Polo.
Bill Asher and Jeff Lefko with Hanley Investment Group Real Estate Advisors represented the seller, an Orange County-based partnership. The buyer, a private investor from Los Angeles, was repped by Paul Bahk and James Chin of Realtex Properties Inc.
“We executed a pre-sale marketing strategy, securing a 1031 exchange buyer based in Southern California, including buyer waiving all contingencies prior to completion of construction,” said Asher. “We closed at 97% of the list price and closed escrow shortly after Dunkin’ opened for business.”
“Barstow is a popular half-way stop between Los Angeles and Las Vegas,” said Lefko. “Over 60 million people and 19 million vehicles travel through Barstow each year. Several major highways converge in Barstow: Interstate 15, Interstate 40, U.S. Route 66, State Route 58 and State Route 247. It is the perfect place to stop for gas and food. Nearby national and regional restaurants include In-N-Out Burger, Arby’s, Burger King, Carl’s Jr., Chili’s, Chipotle Mexican Grill, Del Taco, Denny’s, Dickey’s Barbecue Pit, El Pollo Loco, IHOP, McDonald’s, Panda Express, Panera Bread, Subway, Starbucks, The Habit Burger and Tommy’s.”
“The market for single-tenant assets with drive-thrus like Dunkin’ and Baskin-Robbins remains strong in Southern California,” said Asher. “This type of investment continues to be a retail investment of choice for passive investors, especially leased to national name-brand food tenants.”