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This single-tenant Starbucks Drive-Thru is at Lake Elsinore Marketplace,
Lake Elsinore, CA |
LAKE ELSINORE, CA – Hanley Investment Group Real Estate Advisors,
a nationally recognized real estate brokerage and advisory firm specializing in
retail property sales, announced the firm has arranged the sale of a
single-tenant Starbucks Drive-Thru at Lake Elsinore Marketplace, a
144,034-square-foot shopping center anchored by Costco, Lowe’s, Grocery Outlet,
PetSmart and Dollar Tree.
The sale price was
$3,765,000, representing a 4.25% cap rate. Hanley Investment Group has sold
$375 million in retail properties in the Inland Empire in the last 36 months
including $18.6 million in retail properties at Lake Elsinore Marketplace in
the last 11 months.
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Tiffanie Wang
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Hanley Investment Group Executive Vice Presidents Kevin Fryman
and Bill Asher represented the seller, Pacific Castle, based in Irvine,
California.
The buyer was a private investor from West Covina, California,
represented by Tiffanie Wang of KW Premier Properties in Phillips Ranch,
California.
Built
in 2005 on 0.49 acres and renovated in 2020, the 3,200-square-foot pad building
occupied by Starbucks is located at 29285
Central Avenue in Lake Elsinore.
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| Kevin Fryman |
This sale represents the seventh pad building Hanley Investment
Group has sold in the last 11 months at Lake Elsinore Marketplace including
single-tenant properties for a Wendy's Drive-Thru, Del Taco Drive-Thru, Panda
Express, Valvoline and Wells Fargo as well as a multi-tenant pad building occupied
by Navy Federal Credit Union, iBrows Threading Salon, Submarina and Juice It
Up!
“We facilitated a successful pre-sale strategy and opened escrow
prior to Starbucks opening for business and formal rent commencement date,”
said Fryman.
“Despite the transaction being initiated during the initial months
of COVID-19 being declared a pandemic, we were able to structure a sale
at pre-COVID pricing, during one of the most challenging macro-economic
environments we’ve experienced in over a decade,” Fryman noted.
“Even with the uncertainty caused by the pandemic, demand for
single-tenant net-leased investments with drive-thrus has remained steady, if
not increased in the last six months,” said Fryman.
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| Bill Asher |
“Although drive-thrus have been a staple of QSR revenue for
decades, representing 65% to 70% of a store’s sales, they are now more popular
than ever in 2020 due to health concerns and the desire to socially distance,”
Asher said.
Asher added, “Starbucks had been seeking a drive-thru location for
many years in this immediate trade area. Their new location at Lake Elsinore
Marketplace is well-positioned for long-term future success being situated
within the dominant shopping center, ideally situated on Highway 74/Central
Avenue, the main retail thoroughfare connecting Orange County to Riverside
County.”
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| Highway 74/Central Avenue, the main retail thoroughfare connecting Orange County to Riverside County, California |
“With over 32,000 stores around the world (15,243 in the U.S. as
of the third quarter), Starbucks is one of the most prominent and innovative
retailers in today’s market,” said Asher.
“As a net-leased passive investment, Starbucks provides investors
with a secure and stable investment that requires little to no management.
Furthermore, the stores are situated in high-traffic, fundamentally sound
locations with long-term intrinsic value,” Asher noted.
Hanley
Investment Group has sold 25 Starbucks assets in the last two years throughout
the U.S., most at record pricing.
CONTACT:
Anne Monaghan
anne@monaghanpr.com
www.hanleyinvestment.com.
