• Properties Trade at Historically Low Cap Rates Below or Near 5%
Rancho Cucamonga, CA – October 20, 2015 – Progressive Real Estate Partners, a leading Inland Empire retail brokerage, announced today the sale of two Single-Tenant properties for a combined total of $6.9 million. Both properties are located in Riverside County which is part of Southern California’s Inland Empire market.
Frank Vora, CCIM, Investment Property Specialist at Progressive Real Estate Partners, exclusively represented the sellers in both transactions and Don LeBuhn from CBRE San Francisco represented the buyer, a San Francisco-based private investor:
• Chase Bank – 31575 Canyon Estates Drive, Lake Elsinore, CA – The property sold for $4,425,000 ($885 psf) at a cap rate of 4.29% which is one of the lowest cap rates for a bank transaction in Southern California in recent years. Built in 2004, the 5,000+/- square foot Chase bank is located in a high growth area with more than 14,000 residential units in development. The free-standing bank enjoys easy access AND excellent visibility with pylon signage visible on the busy I-15 freeway with a daily traffic count of over 140,000 cars. The bank is located in the Summerhill Commercial Center with is part of Lake Elsinore’s major commercial hub which also includes Walmart, Vons, Stater Bros., Big Lots, Starbucks and Ford & Chrysler auto dealerships.
• Firestone – 18580 Van Buren Blvd. Riverside, CA – The property sold for $2,499,000 ($500 psf) at a cap rate of 5.28%, one of the lowest cap rates for a tire store in Southern California. The brand new 5,000+/- square foot store is located in an affluent area with an average household income of over $110,000 in a 3-mile radius. The center is located on Van Buren Blvd. which is a heavily traveled street with over 51,000 cars per day. Other complimentary users in the center include O’Reilly Auto Parts and several food and retail shops. Additionally there is strong synergy with other major retailers in the immediate area including Kohl’s Albertsons, Petco, Walgreens and many others. The franchisee, Ramona Tire, owns and operates 18 Firestone locations across Southern California.
“These two sales are an excellent representation of the robust demand we are seeing from both institutional and private-capital investors for high quality Single Tenant properties in the Inland Empire” according to Vora. “Collectively we generated 25 competitive and qualified offers further demonstrating the limited supply of investment grade properties available in the marketplace”.
About Progressive Real Estate Partners
Progressive Real Estate Partners (PREP) is a boutique commercial brokerage firm headquartered in Rancho Cucamonga, California. Founded in 2008, the firm specializes in the leasing and sale of retail properties in Southern California’s Inland Empire market. The office is also the exclusive Inland Empire representative of the Retail Brokers Network (RBN). Since the firm’s inception Progressive has completed over 500 lease and sales transactions in over 35 cities throughout the region. Progressive uses the latest marketing and brokerage techniques to help retailers and property owners achieve their real estate goals. PREP is led by Brad Umansky, founder and president. For further information visit www.progressiverep.com.