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9/18/20
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In a recent SoCal retail investment deal, Wood Investments Companies Inc purchased a 28.2k sf, single-tenant property occupied by 99 Cents Only Stores on just over two acres in Chino Hills for $2.5 mil ($89/sf).
99 Cents Only is located at 4050 Chino Hills Pkwy in the Chino Hills Parkway shopping center, at the signalized intersection of Chino Hills Pkwy and Pipeline Ave, adjacent to the 71 Chino Valley Fwy on/off-ramp. The property is situated across the street from Chino Hills Marketplace, which includes Smart & Final Extra!, Turner’s Outdoorsman, Rite Aid, Dollar Tree, Circle K, Starbucks, Chase, Bank of America, The Habit Burger Grill, Taco Bell, El Pollo Loco and Carl’s Jr.
According to Managing General Partner Patrick Wood of Wood Investments Companies, the property’s current in-place rent is below-market, providing the company with the ability to capture significant future upside upon the expiration of the 99 Cents Only lease. The building, which was originally built in 1974 for Alpha Beta, allows for multiple re-tenanting strategies or even subdividing the space.
The firm plans to hold the property for cash flow until the end of the 99 Cents Only lease and will either negotiate a new lease with 99 Cents Only or another essential needs/grocery tenant at market rents. The execution of the business plan is expected to take approximately three to five years to complete.
Grocery Outlet recently signed a lease in the former Big Lots space at the Chino Hills Parkway shopping center, proving the tremendous opportunity. Other tenants in the shopping center include 7-Eleven, Jack in the Box, AutoZone and H&R Block. Chino Hills Parkway Center is located in a dominant retail trade area that is surrounded by tremendous residential growth, superior existing demographics and features strong traffic counts (50,400 CPD) along Chino Hills Parkway.
The seller was represented by Patrick Wade, Alex Kozakov and Jake Hayutin of CBRE’s South Bay office in El Segundo. Wood Investments Companies was self-represented. Private equity real estate investment firm, JDI Realty LLC of Chicago, is the lender in the deal.
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