By: Lee & Associates-LA North/Ventura, Inc.

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In a move that signals the continued activity in the Conejo Valley area office and R&D markets, Lee & Associates – LA North/Ventura Principals Jay Rubin and Jared Smits, negotiated the $19.275 million sale of a large office & R&D complex, 30601 Agoura Road, located in Agoura Hills. The building spans 118,864 square feet and includes a solar power plant and at the time of the sale, the property was 58 percent occupied. The buyer is Harbor Associates, represented by Mark Perry at CBRE and the seller is Adler Realty, represented by Rubin and Smits at Lee & Associates.

“This was an incredibly successful sale at a time when the market has been evolving rapidly in the Conejo Valley. We focus on tracking the current market trends in order to identify the right buyer. The Conejo Valley continues to be one of the most desirable suburban markets in the greater Los Angeles area.” -Principal Jay Rubin

Read more in the San Fernando Valley Business Journal here: https://lnkd.in/dgQSU5Hn

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FONTANA. 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 has arranged the sale of two multi-tenant retail pad buildings at Highland Village Shopping Center, a new Sprouts-anchored shopping center in Fontana, California. The two buildings, which totaled 13,515 square feet, closed at over $11 million. This transaction marks the eighth property Hanley Investment Group has sold at Highland Village, totaling a combined 61,123 square feet and approximately $40.8 million in total sales.

Hanley Investment Group’s Executive Vice Presidents Kevin Fryman, Bill Asher and Jeff Lefko represented the seller, Adler Realty Investments, who completed the ground-up shopping center development in 2018-2019. The buyer was a private 1031 exchange investor based in Beverly Hills, California and was represented by Mark Stein of CPMC Realty in Palm Desert, California.

“Retail developers continue to capitalize on executing the break-up sale strategy due to the consistent high-level of demand from investors seeking new construction single-tenant and multi-tenant pads in today’s market,” said Fryman. “The sales of the two multi-tenant pad buildings at Highland Village were a prime example of matching up a retail investment not formally on the market yet with a specific investor’s acquisition criteria seeking to complete a 1031 exchange. We were able to identify and procure the buyer in an off-market transaction and effectuate a year-end closing to achieve both parties’ objectives.”

The two multi-tenant retail pad buildings are located at 16918-16938 South Highland Avenue on an outparcel to a 30,000-square-foot Sprouts Farmers Market at the hard-corner, signalization intersection of Highland Avenue and Sierra Avenue. The pad tenants include Cafe Rio, Jersey Mike’s Subs, Fatburger, Oggi’s Pizza, AB Barber and Crumbl Cookies. Other tenants at the shopping center include Sit ‘n Sleep, Raising Cane’s Chicken Fingers, Jack in the Box, Pacific Dental, Quick Quack Car Wash and Mountain View Tire & Auto Service. The shopping center is immediately adjacent to the 210 Freeway at the Sierra Avenue entrance/exit.

Hanley Investment Group’s Fryman, Asher and Lefko previously arranged the sale of an 8,400-square-foot Sit ‘n Sleep, a 7,500-square-foot multi-tenant retail shop building adjacent to Sprouts, a Quick Quack Car Wash ground lease; plus the sales of Sprouts, Mountain View Tire & Auto Service, Raising Cane’s and Jack in the Box, each as separate, single-tenant transactions at Highland Village Shopping Center. Hanley Investment Group’s sale of Quick Quack Car Wash was the first single-tenant Quick Quack to sell as a net-leased investment in California.

“We were able to maximize value for the seller through individual sales to private, non-institutional investors in a price range of approximately $2 million to $11 million, a price range that greatly appeals to the largest buyer pool in the retail investment industry,” said Fryman. “Investors recognized that this shopping center and its location and demographics offered long-term security and stability in a continued growth area.”

Fryman added that there are 325,000 people within a five-mile radius and an average household income of $89,000 within a one-mile radius of the shopping center.

“Investor demand for well-located, multi-tenant retail properties leased to nationally and regionally recognized internet-resistant tenants was at unprecedented levels in the second half of 2021,” said Asher. ”We expect this demand to continue in 2022, especially as an alternative investment and opportunity to acquire retail at a higher return compared to the highly compressed cap rates found in the single-tenant market.”

About Hanley Investment Group

Hanley Investment Group Real Estate Advisors is a real estate brokerage and advisory services company with an $8.9 billion transaction track record that specializes in the sale of retail properties nationwide. Our expertise, proven track record, and unwavering dedication to putting clients’ needs first set us apart in the industry. Hanley Investment Group creates value by delivering exceptional results through the use of property-specific marketing strategies, cutting-edge technology, and local market knowledge. Our nationwide relationships with investors, developers, institutions, franchisees, brokers, and 1031 exchange buyers are unparalleled in the industry, translating into maximum exposure and pricing for each property. With unmatched service, Hanley Investment Group has redefined the experience of selling retail investment properties.

The first phase of AI Northside Industrial Park will include two best-in-class industrial buildings, totaling 280,000 sq. ft. A 32-foot ceiling clearance, ESFR sprinkler system and 200+ foot-wide truck court are a few of the many features that make this an efficient and productive environment for businesses with warehouse distribution requirements.

The AI Northside Industrial Park, located just one mile north of the I-84 interchange at Northside Blvd., boasts a prime location benefiting from the robust business environment of Nampa. Divisible to 28,000 sq. ft. and constructed with attention to details large and small, including: dock high dock doors with padding and load levelers, LED motion-sensored lighting, skylights, Cambridge ventilation systems and slab armor, AI Industrial Park will be an ideal location for a wide array of businesses to call home.

Inquiries regarding additional building specifications or space availabilities, contact Brad Miller or Mike Adler at 208-506-7170 or at adler-industrial.com. Adler Industrial is located at 10259 W Emerald Street, Ste. 100, Boise, Idaho 83704.

“We are excited about the execution of this lease as well as the robust leasing demand for space in our industrial portfolio,” said Michael Adler, President of Adler Industrial. “Our ability to be creative and attentive to prospective tenants’ needs has consistently resulted in maintaining high occupancy in our existing buildings as well as providing build to suit solutions for tenants with specific requirements.”

Brad Miller, Managing Director of Adler Industrial negotiated the lease directly with tenant. Adler Industrial also collaborates with the Treasure Valley brokerage community to provide solutions for their client’s requirements. Adler also happily works with the Treasure Valley brokerage community on their clients’ requirements.

About Adler Industrial, Inc.
Adler Industrial, Inc. is a real estate management and development company based in Boise, Idaho. Adler Industrial owns and operates eighty properties in the Boise market consisting of 2.5 million square feet of existing buildings and 400+ acres of land for future development. With a focus on Class “A” industrial properties, the company provides a wide range of solutions to meet the tenant requirements in the market.

Adler Industrial is a sister company of Adler Realty Investments, a firm established in 1996, with over $1 billion in properties acquired or in development since inception. Adler’s real estate portfolio currently consists of over 4 million square feet of existing industrial, office, retail, and multi-family residential properties and an additional 3 million square feet of projects in planning or development throughout the western United States.

For more information on leasing or build-to-suit options, please contact Mike Adler at 208.506.7163 or visit www.adler-industrial.com. Adler Industrial is located at 10259 W. Emerald Street, Ste. 100, Boise, Idaho 83704.

FONTANA. 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 has arranged the sale of a new construction, single-tenant Sprouts Farmers Market at the Highland Village Shopping Center in Fontana, California. The sale price was $10.4 million, representing a 5.19% cap rate, a record-low cap rate and a record-high price per square foot for a single-tenant grocery store in the Inland Empire.

Hanley Investment Group’s Executive Vice Presidents Kevin Fryman, Bill Asher and Jeff Lefko represented the seller, Adler Realty Investments, Inc., based in Woodland Hills, Calif. The buyer, a private investor, was represented by Heidi Kim of TNG Real Estate Consultants of Brea, California.

Adler Realty Investments recently completed the ground-up shopping center development, which is anchored by a 30,000-square-foot Sprouts Farmers Market, and also includes Burgerim, Jack in the Box, Raising Cane’s Chicken Fingers, Jersey Mike’s, Café Rio, Oggi’s Restaurant, Mountain View Tire & Auto Service, Pacific Dental and Quick Quack Car Wash (currently under construction). The property is immediately adjacent to the 210 Freeway at the Sierra Avenue entrance/exit.

According to Fryman, Highland Village enjoys exposure to a high volume of commuters and local residents that travel along the 210 Freeway, one of the major east/west freeways connecting California’s San Gabriel Valley and Inland Empire. The average daily traffic count is approximately 119,000 at the Sierra Avenue exit. The freeway-visible pylon sign provides outstanding exposure, identity and visibility for Sprouts and the entire shopping center by eastbound and westbound traffic.

“Highland Village Shopping Center is located directly across the street from Fontana Auto Center and the Fontana Promenade, the site of a future new Walmart Supercenter, which will drive a tremendous volume of regional traffic to an already busy area,” Fryman added.

“We generated a tremendous volume of interest in the Sprouts including procuring multiple competitive and qualified offers,” Asher stated. “We secured an all-cash, non-1031 exchange buyer and negotiated a longer escrow to allow time to complete the parcel subdivision to sell the Sprouts separately.

“With the sale of Sprouts, we helped the seller maximize value by executing another break-up sale at Highland Village and achieved approximately 75-100 basis points better than if the owner sold the shopping center as a whole,” Asher said. “Previously, we sold the Mountain View Tire & Auto Service, Raising Cane’s Chicken Fingers and the Jack in the Box, each as separate, single-tenant transactions at the shopping center. We now are marketing for sale a new single-tenant Sit ‘n Sleep and a new 7,500-square-foot, three-tenant, retail shop building located next to Sprouts with tenants Pacific Dental Services, Arrowhead Credit Union and MJ Nail Salon.”

Asher continues, “The new-construction Sit ‘n Sleep and the shop building represent two excellent opportunities to acquire newly constructed retail assets in a freeway-visible, dominant retail trade area with affluent demographics in a growing residential and industrial/commercial area.”

Fryman adds, “National and regional tenants also located at the Sierra Avenue exit include Costco, Home Depot, JOANN, LA Fitness, Lowe’s, OfficeMax, Petco, Ralphs and Walgreens. A newly developed 430,000-square-foot shopping center is located nearby along Highland Avenue, anchored by 24 Hour Fitness, Burlington, Cinemark, Grocery Outlet, Old Navy, Ross Dress for Less, and ULTA Beauty, drawing additional regional traffic.”

Approximately 10,000 new residential units are proposed to be built within 2.5 miles of Highland Village Shopping Center including Ventana at Canyon Duncan, a 105-acre master-planned mixed-use community with 842 residential units, 360,000 square feet of office/business park space, and 128-room hotel space; and Westgate Specific Plan, a 954-acre development with 3,751 residential units and 1.2 million square feet of warehouse space; and The Renaissance, a 1,439-acre, master-planned, mixed-use redevelopment project with 1,700 housing units, 500,000 square feet of retail space, and 3.9 million square feet of industrial space, which includes distribution centers for Amazon, Black & Decker, Niagara Water, Monster Beverage, Target, and Under Armour. Golden State Foods opened a 183,000-square-foot distribution center in Fontana in July 2018. The City of Fontana has received “Top Workplace” honors three years in a row, 2019, 2018 and 2017.

Fontana is the 2nd largest city in San Bernardino County and is projected to grow by 7.5% between 2017-2022. According to the City of Fontana Mayor, Acquanetta Warren, Fontana is expected to be the largest city in San Bernardino County after Census 2020.

Fontana is the #2 “Financially Strongest City with a Population of More than 200,000” (Fiscal Times, 2017). There are currently 320,000 people within a five-mile radius and an average household income of $82,000 within a one-mile radius of the Highland Village Shopping Center. Within one mile of Highland Village, the population is expected to grow 16% between 2017-2021.

Sprouts Farmers Market (NASDAQ: SFM), one of the fastest-growing retailers in the country, has made healthy living accessible to shoppers for nearly two decades by offering affordable, fresh, natural and organic products. True to its farmers market heritage, Sprouts is known for pioneering its unique grocery model by offering a welcoming store layout featuring fresh produce at the center of the store, an expansive bulk foods section, and a vitamin department focused on overall wellness. Sprouts also offers a unique assortment of healthier products with special attributes, such as plant-based, gluten-free, keto-friendly, and grass-fed, to meet the growing and diverse needs of today’s consumer. Headquartered in Phoenix, Arizona, Sprouts employs more than 30,000 team members and operates over 340 stores in 22 states from coast to coast.

About Hanley Investment Group

Hanley Investment Group Real Estate Advisors is a retail investment advisory firm with a $6+ 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.

“We are pleased with the completion of the construction of these smaller size buildings which remain in strong demand from owner-users,” said Michael Adler, president of Adler. “Riverside County continues to grow and requires more quality industrial product.” added Rod Oshita, President of Fairway Commercial Partners. “The industrial park benefits from a central Inland Empire location and strong labor pool with easy access to interstate 15”.

Phase 3 of the industrial park is designed for an additional 140,000 square feet in four buildings. Larry Null and Charlie Black of Lee & Associates, represented the seller in the transaction and are marketing the remaining buildings.