CORONA DEL MAR, CALIF. – (RealEstateRama) — Hanley Investment Group Real Estate Advisors, a nationally-recognized real estate brokerage and advisory firm specializing in retail property sales, announced today that Senior Vice President Jeremy McChesney completed the sale of a rare single-tenant absolute net-leased Enterprise Rent-A-Car property in Redlands, Calif. The purchase price was $1,520,000, which represented a cap rate of 5.55% and $626 per square foot.
McChesney represented the seller, Equitas Investments, based in Hermosa Beach, California. The buyer, was a private investor based in Alhambra, CA and was represented by Hai Luong of Maxwell Realty Inc.
The 2,324-square-foot single-tenant building was built in 1984 on .70 acres at the signalized hard-corner intersection at the northwest corner of Industrial Park Avenue and Colton Avenue, just off California Highway 10. The building, which is located at 1325 Industrial Park Avenue, is a former Long John Silver’s restaurant that is currently being converted into an Enterprise-Rent-A-Car. Enterprise Rent-A-Car signed a 10-year corporate-backed absolute triple-net lease with two five-year options with annual CPI Increases. The tenant is responsible for property taxes, insurance, common area maintenance, repairs and maintenance, roof and structure.
According to McChesney, Enterprise Rent-A-Car will be relocating from its location across the street and is slated to open in the first quarter of 2017. Enterprise has been successfully operating there since the 1980s. Enterprise is the largest rental car company in the United States with over 7,200 locations.
“We generated six offers within the first few two weeks of marketing the property, and negotiated a short 21-day inspection period and 30-day closing on behalf of the seller,” said McChesney. “We closed with an all-cash buyer based in Southern California at a very aggressive 5.53% closing cap rate for an Enterprise Rent-A-Car property with an early termination clause allowing the tenant to cancel the lease after five years.”
Redlands is located in San Bernardino County, just 36 square miles southeast of the city of San Bernardino, west of Yucaipa. The city is located approximately 10 miles from downtown San Bernardino, and roughly 60 miles east of downtown Los Angeles.
The property draws from the over 77,000 residents within three miles of the property with household incomes in excess of $79,000 helping to ensure the long-term viability of this location. Retailers and restaurants in the immediate trade area include Chevrolet, Nissan, Auto Mobile Club, CVS/pharmacy, Big Lots, Burlington Coat Factory, Lumber Liquidators, Taco Bell, Arby’s, El Pollo Loco, Coco’s Bakery, and Papa John’s Pizza, amongst others.
About Hanley Investment Group
Hanley Investment Group Real Estate Advisors is a retail investment advisory firm with a $5 billion transaction track record nationwide, who works closely with individual investors, lending institutions, developers, and institutional property owners in every facet of the transaction to ensure that the highest value is achieved. For more information, visit www.hanleyinvestment.com.