|A Hemet-based private investor paid $3.24 mil for a newly developed, 4k sf single-tenant net-lease retail pad building occupied by Sherwin-Williams in Beaumont. The deal had a 4.50% closing cap rate.
The Sherwin-Williams property is a new ground-up development of a pad located in front of the Cinema West’s 2nd Street Cinema, adjacent to San Gorgonio Village, a 78k sf shopping center that Wood Investments Companies developed and owns. San Gorgonio Village is home to Grocery Outlet, ULTA Beauty, Bath & Body Works, Planet Fitness, Raising Cane’s, In-N-Out Burger and Five Below. Other nearby retail tenants include Walmart, Home Depot, Albertsons, ALDI, Best Buy, Big Lots, Dollar Tree, Hobby Lobby, Kohl’s, Marshalls, Petco and Ross Dress for Less.
Sherwin-Williams is located at 1495 East 2nd St on a 0.77-acre outparcel at the hard corner, signalized intersection of Commerce Way and 2nd Street. Sherwin-Williams, which opened in November 2022, signed a new 10-year triple-net lease with rental increases every five years.
A Fortune 500 company, The Sherwin-Williams Company is a global provider of paints, coatings, and related products. The company is headquartered in Cleveland, Ohio, United States. The company's business model is based on selling a wide range of high-quality coatings products in over 60 countries around the world, with a network of over 5,000 company-owned stores, independent dealer stores, and other retail outlets as well as through contractors and professional painting contractors. Sherwin-Williams was ranked #46 on National Retail Federations’ Top 100 U.S. Retailers 2022 List.
Lee Csenar and Ed Hanley with Hanley Investment Group Real Estate Advisors represented Wood Investments Companies, the seller and developer, in the transaction. Howard Rosenthal and Guy Excell of Rosenthal & Excell Commercial Real Estate repped the buyer.
“The sale of the Sherwin-Williams occupied property was part of the strategic plan when we had originally purchased the property over three years ago,” said Wood. “It was an additional pad that was created due to tenant demand from the shopping center across the street that we had previously built at San Gorgonio Village.”
In addition to Sherwin-Williams’ ideal location within the area’s dominant regional retail hub, the property benefits from its location adjacent to two master-planned communities, Butterfield and Sundance, with approximately 9,000 residential units between both communities and its proximity to Interstate 10 (138,500 cars per day). The property is also near multiple popular tourist destinations such as Palm Springs, Morongo Resort & Casino, and Greater Palm Springs, with over 15 million annual visitors.
The city of Beaumont is part of the Inland Empire, one of the fastest-growing regions in the country. Over the last 30 years, the Inland Empire has grown by 78%, more than twice as fast as the rest of California during that same period.