Four-tenant Huntington Beach building at Sprouts center sells for $4.1M
HUNTINGTON BEACH, 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 arranged the sale of a multi-tenant shop building shadow-anchored by Sprouts Farmers Market in Huntington Beach, Calif. The sale price was $4.1 million, representing a cap rate of 4.94%.
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Hanley Investment Group Executive Vice President Eric Wohl represented the seller, a private investor from Newport Beach, California. The buyer, a private investor from San Diego, California, was represented by Randy Rivera of Capital Real Estate Ventures, also based in San Diego.
Located at the signalized intersection of Warner Avenue and Goldenwest Street at 6946-6968 Warner Avenue, the 8,600-square-foot retail property was 100%-occupied by four triple-net-lease tenants: Trading Post Fan Company, Advanced Dental Huntington Beach, Surf City Nails and Alternative Mind Concepts. The retail building, which was built in 1973, is situated on 0.75-acre parcel adjacent Sprouts and has excellent access and visibility including a large pylon sign and six points of ingress/egress, according to Wohl.
A four-tenant shop building in Huntington Beach shadow-anchored by Sprouts was recently sold for $4.1 million. The sale was facilitated by Hanley Investment Group. HIG photo
“An irreplaceable coastal location combined with significantly below market rents made this a very unique offering rarely available on the market,” said Wohl. “The property is located less than three miles from the Pacific Ocean and Interstate-405 freeway and features below-market rents, ease of management with favorable triple-net leases and strong rental increases. The property also benefits from a population count of 188,000 people with average household incomes exceeding $116,000 within three miles of the property and more than 57,000 cars per day at the signalized intersection of Warner Avenue and Goldenwest Street.”
Wohl also added that all four corners of the signalized intersection feature shopping centers. Tenants include: Home Depot, Stater Bros., Ross Dress for Less, CVS/pharmacy, Big Lots!, O’Reilly Auto Parts, AutoZone, El Pollo Loco, Pizza Hut, U.S. Bank, Bank of the West, Friar Tux, 7-Eleven, Carl’s Jr., Cold Stone Creamery, Boston Market, Juice it Up!, Subway and more.
Last year, the National Retail Federation’s Stores magazine named Sprouts Farmers Market, Inc. (NASDAQ: SFM) as the 20th fastest-growing retailer in America. The company is No. 22 on Progressive Grocer’s 2019 Super 50 list of the top grocers in the United States. At the end of the first quarter of 2019, Sprouts had 322 stores from coast to coast. Last month, Jack Sinclair, former CEO of 99 Cents Only Stores and previously an executive at Walmart’s U.S. grocery division, was made CEO of Sprouts. The company opened its first store in 2002 in Chandler, Arizona and today offers a complete shopping experience that includes fresh produce, a butcher shop and deli, bulk foods, vitamins and supplements, dairy, bakery, body care items and more. With 90% of the company’s 20,000+ products being natural or organic, the stores cater to everyday shoppers interested in natural foods at affordable prices.
“Huntington Beach, known as ‘Surf City USA,’ attracts 13 million visitors per year and predicts an increase of more than 40% in job growth in its city over the next 10 years. The city was also named 15th in the ranking of “Best-Run Cities in America” (by Wallet Hub 2017),” Wohl said.
“As the retail investment landscape continues to transform, well located coastal properties such as the sale of the shops to Sprouts in Huntington Beach transaction continue to demonstrate that investors are willing to transact at premium pricing for properties with excellent real estate fundamentals in ‘A’ locations,” added Wohl.
Submitted by Hanley Investment Group
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Trevor Montgomery, 47, moved last year 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 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 28 years and was a foster parent to more than 60 children over 13 years. He is now an adoptive parent and his “fluid family” includes 13 children and 15 – but soon to be 16 – grandchildren.