POMONA, Calif. – Hanley Investment Group Real Estate Advisors, a national real estate brokerage and advisory firm specializing in retail property sales, announced today the sale of a newly renovated, single-tenant Starbucks café and drive-thru in Pomona, California. The property sold for $4,575,000.
Hanley Investment Group’s Executive Vice President Bill Asher and Executive Vice President and Partner Jeff Lefko represented the seller, LA Icon LLC of Los Angeles. The buyer, a private investor based in Los Angeles completing a 1031 exchange, was represented by Brad Freeman of Freeman & Associates.
“We procured a repeat Southern California-based 1031 exchange buyer through a broker relationship, both of whom we have successfully transacted with on multiple occasions,” Asher said. “We secured the buyer within days of closing their downleg, allowing them to confidently identify an upleg and close escrow early in their 1031 exchange period.”
The 1,650-square-foot building, originally constructed in 1977, was converted from an independent fast-food restaurant and fully renovated in 2024 to Starbucks’ newest prototype. The property sits on a 0.38-acre parcel at 2302 North Garey Avenue, at the hard-corner, signalized intersection of Arrow Highway and Garey Avenue, which sees more than 38,000 cars per day.
The location benefits from dense, infill Los Angeles County demographics and proximity to major regional demand drivers, including The Claremont Colleges, a consortium of seven private institutions with 8,500 students and 4,300 faculty and staff located 2.5 miles east; the University of La Verne, a private nonprofit university with 7,000 students 1.5 miles west; the LA County Fairplex, which attracts 3 million visitors annually and sits 1.5 miles west; and Pomona Valley Hospital Medical Center, a 427-bed facility serving 300,000 patients per year, located 1.5 miles south.
The property is also 200 feet from the Pomona Gold Line Metro Station, which connects to Downtown Los Angeles in 30 minutes, and near new multifamily development, including The Gabriel, a recently completed 320-unit apartment community 0.3 miles north.
The newly renovated Starbucks features a corporate 15-year triple-net lease with 10% rental increasesevery five years during the primary term and each of the three five-year options.
“This is a rare 15-year primary lease term with no early termination right, signaling strong long-term commitment to the site,” Asher said. “The buyer also benefitted from a lease structure that Starbucks was responsible for maintaining the property including the roof, a unique characteristic for a fee-simple Starbucks investment in California in today’s market.”
Starbucks (NASDAQ: SBUX), rated BBB+ by S&P, has been named one of Fortune’s “World’s Most Admired Companies” from 2009 to 2025 and operates more than 40,000 stores in 84 countries.
“Starbucks’ recently outlined plans for renewed expansion and long-term, sustainable growth reflect a strategic push to improve store-level economics and strengthen performance across more markets,” Asher said. “This forward-looking approach reinforces investor confidence in the brand’s adaptability and enduring value, particularly in high-density, infill locations like Pomona.”
The property also benefits from a highly coveted drive-thru entitlement secured before the City of Pomona enacted its August 2024 drive-thru prohibition, which restricts new quick-service restaurant drive-thrus. “This entitlement alone creates significant long-term value and barriers to entry,” Asher added.
The property’s dense Los Angeles County location, its conversion from a former independent fast-food restaurant and its position within a high-visibility, high-traffic trade area further enhance the stability and performance investors expect from a corporate Starbucks lease.
“This sale underscores the continued strength of the Starbucks brand and the depth of investor demand for high-quality, daily-needs assets in top-performing trade areas,” Asher said. “With its updated store design, long lease term and prime Los Angeles County location, this property offers the stability and performance characteristics investors consistently seek in the single-tenant net-lease market.”
To date, Hanley Investment Group has closed more than $760 million in Starbucks property transactions nationwide, including 75 Starbucks-occupied properties in California.
About Hanley Investment Group
Hanley Investment Group Real Estate Advisors is a real estate brokerage and advisory services company with a transaction track record of $12.8 billion, specializing in the sale of retail properties nationwide. The firm’s expertise, proven track record spanning more than 20 years, and dedication to putting clients’ needs first set it apart in the industry. Hanley Investment Group creates value by delivering exceptional results through property-specific marketing strategies, cutting-edge technology and local market knowledge. Hanley Investment Group’s relationships with investors, developers, institutions, franchisees, brokers and 1031 exchange buyers translate into maximum exposure and pricing for each property. With unmatched service, Hanley Investment Group has redefined the experience of selling retail investment properties.
For more information, visit www.hanleyinvestmentgroup.com.
Media Contact
Company Name: Hanley Investment Group Real Estate Advisors
Contact Person: Bill Asher, Executive Vice President
Email: Send Email
Phone: 949.585.7684
Address:3500 East Coast Highway, Suite 100
City: Corona del Mar
State: California
Country: United States
Website: https://hanleyinvestmentgroup.com/