HIG sells Rialto Coffee Bean & Tea Leaf with drive-thru for nearly $2.9M
RIALTO, Calif. – Hanley Investment Group Real Estate Advisors, a nationally recognized real estate brokerage and advisory firm specializing in retail property sales, announced today that the firm completed the sale of a brand-new single-tenant retail property occupied by The Coffee Bean & Tea Leaf at 1877 North Riverside Avenue in Rialto, California. The sale price was $2.895 million, representing a 3.8 percent cap rate and $1,667 per square foot.
LEADING THE RIVCO HEADLINES:
CORONA: Dumped in semi-rural area, infant found deceased
WILDOMAR: Youth pastor charged with molesting children over 18 year span
UPDATE: Man who died in alcohol-related golf cart crash at Temecula RV resort ID’d
With a price of $2.895 million, HIG’s recent sale of a Coffee Bean & Tea Leaf – the oldest and largest privately-held American coffee chain – represents a 3.8 percent cap rate and $1,667 per square foot.
Hanley Investment Group Executive Vice President Bill Asher and Vice President Jeff Lefko represented the seller, Fountainhead Development based in Newport Beach, California. Ash Joshi of Capital Realty Solutions Inc. in San Fernando, California, represented the buyer, a private investor based in Chatsworth, California.
The new construction, freestanding, 1,710-square-foot The Coffee Bean & Tea Leaf, which opened on July 23rd, has a drive-thru and is located on a 0.48-acre pad at the hard corner, signalized intersection at Riverside Avenue and Easton Street/Highland Avenue, where traffic counts are in excess of 62,000 cars per day. The property is immediately adjacent to the Interstate 210 freeway at the Riverside Avenue entrance/exit. The 210 Interstate freeway is one of the major east/west freeways connecting California’s San Gabriel Valley and Inland Empire.
“The initial 15-year lease term was a very compelling attribute to the investment in obtaining sub-four percent cap pricing and generating multiple additional offers within striking distance,” said Asher.
“The asset featured the outstanding real estate fundamentals passive investors look for in today’s market – hard corner, signalized location, morning drive side to work for coffee drinkers, immediate access to a major freeway, and rare prominent city freeway signage,” notes Asher.
“The property benefits from high-identity freeway signage rights owned in perpetuity; one of only three retail tenants featured on the City of Rialto’s 95-foot pylon located along the 210 Interstate freeway, which is highly visible by daily eastbound and westbound traffic,” said Lefko. “Average daily traffic count along the 210 freeway is approximately 112,000 cars per day. The property is also situated near Interstate 215. At the Ramona Expressway exit on Interstate 215 average daily traffic count is 145,000 cars per day.”
“Sharing a signalized intersection with In-N-Out Burger (directly across the street) doesn’t hurt either,” added Asher. “Coffee Bean will certainly benefit tremendously long-term from the regional traffic In-N-Out Burger draws and speaks to the overall strength of the quality of the location.”
Other nearby national credit tenants that drive sales traffic to the immediate area include Arco/AMPM, Chipotle, Jack in the Box, Jersey Mike’s Subs, Wingstop, 7-Eleven, Carl’s Jr., Del Taco, Rite Aid, Walgreens and Verizon.
With over 1,000 locations around the world, Coffee Bean & Tea Leaf is known for providing the finest ingredients and flavors from around the world and feature a variety of fresh roasted coffee and specialty teas, along with baked goods and blended ice drinks.
LEADING THE SHASTA COUNTY HEADLINES:
UPDATED: Firefighters still battling Corner Fire, now at 35 acres with 25% containment
Already battling massive Carr Fire, officials now dealing with residential and business looting
The City of Rialto is the sixth largest city in San Bernardino County and the 11th largest in the Inland Empire with over 369,000 people within a five-mile radius of the property. There are one million people within 10 miles.
The Coffee Bean & Tea Leaf is the oldest and largest privately-held American coffee chain. Founded in 1962 with over 1,000 locations around the world and growing, the specialty coffee and tea retailer is known for providing and sourcing the finest ingredients and flavors from around the world. The company’s outlets feature a variety of fresh roasted coffee and specialty teas, along with baked goods and blended ice drinks. The Coffee Bean & Tea Leaf also sells bagged coffee and tea at grocery stores, including Albertsons and Vons.
In the last 18 months, Hanley Investment Group has been one of the most active brokerage companies in the sale of single-tenant and multi-tenant pads in California that include a coffee tenant (Starbucks, Coffee Bean or Dunkin Donuts) selling 15 properties valued at $70 million since the beginning of 2017.
Contact the editor: [email protected]
Trevor Montgomery, 47, recently moved to the Intermountain area of Shasta County from Riverside County and runs Riverside County News Source and Shasta County News Source. Additionally, he writes for several other news organizations, including Riverside County based newspapers, Valley News, The Valley Chronicle and Anza Valley Outlook, as well as Bonsall/Fallbrook Village News in San Diego County and The Mountain Echo in Shasta County.
Trevor spent 10 years in the U.S. Army as an Orthopedic Specialist before joining the Riverside County Sheriff’s Department in 1998. He was medically retired after losing his leg, breaking his back and suffering both spinal cord and brain injuries in an off-duty accident. (Click here to see segment of Discovery Channel documentary of Trevor’s accident.)
During his time with the sheriff’s department, Trevor worked at several different stations, including Robert Presley Detention Center, Southwest Station in Temecula, Hemet/Valle Vista Station, Ben Clark Public Safety Training Center and Lake Elsinore Station, along with other locations.
Trevor’s assignments included Corrections, Patrol, DUI Enforcement, Boat and Personal Water-Craft based Lake Patrol, Off-Road Vehicle Enforcement, Problem Oriented Policing Team and Personnel/Background Investigations. He finished his career while working as a Sex Crimes and Child Abuse Investigator and was a court-designated expert in child abuse and child sex-related crimes.
Trevor has been married for more than 27 years and was a foster parent to more than 60 children over 13 years. He is now an adoptive parent and has 13 children and 14 – soon to be 15 – grandchildren.