|A 43.4k sf, single-tenant net-leased investment occupied by Cardenas Markets in San Bernardino sold for $8.23 mil ($190/sf). The building, located within the fully leased Sterling Plaza shopping center in San Bernardino, traded at a record-low cap rate for a single-tenant Cardenas Markets nationwide.
Built in 1988 and renovated in 2018, the Cardenas Markets building is located on 3.31 acres at 2045 E. Highland Ave, adjacent Planet Fitness in the Sterling Plaza shopping center. Sterling Plaza is situated at the signalized intersection of Highland Ave and Sterling Ave, a highly trafficked signalized intersection with an average of 33,700 cars per day. The property is just one block from the on/off ramps of Foothill Freeway/State Route 210, which has approximately 94,000 cars per day.
In addition to Cardenas Markets and Planet Fitness, Sterling Plaza includes Starbucks and Wendy’s drive-thrus, O’Reilly Auto Parts, Bank of America, KFC, and more. Nearby credit tenants include Rite Aid, 99 Cents Only, Food 4 Less, Stater Bros. Markets, CVS Pharmacy, Walgreens, Harbor Freight Tools, Big Lots, Big 5 Sporting Goods, AutoZone, Del Taco, El Pollo Loco, and others.
The newly remodeled Yaamava’ Resort & Casino is located only two miles from Sterling Plaza. It is reported to be the largest casino in California with 432 rooms, 6,500 slot machines, 135 table games, 38 poker tables, five high-limit rooms, and a 2,800-seat entertainment venue.
Eric Wohl and CJ Kiehler with Hanley Investment Group Real Estate Advisors represented the seller, a local developer based in Newport Beach. The buyer, a private investor based in Corona, California, was repped by Ranhee Im with ANA Capital in Los Angeles.
“We generated 16 qualified offers and secured a 1031 exchange buyer who exceeded the asking price,” said Wohl. “The property sold for a 4.74% cap rate, a record-low cap rate for a single-tenant Cardenas Markets in the U.S.”
According to Wohl, Cardenas spent approximately $4 mil on improving the site, demonstrating a long-term commitment to the location. Cardenas is one of the largest Hispanic supermarket chains in the country, with 59 locations across California, Arizona and Nevada. In 2016, KKR, a New York City-based global investment firm and Victory Park Capital, a Chicago-based private equity firm, purchased Cardenas Markets.”