FOOTHILL RANCH, 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 completed the sale of a new two-tenant retail building occupied by Dunkin’ Donuts/Baskin Robbins Drive-Thru and MOD Pizza at 26722 Portola Parkway in Foothill Ranch, Calif. The 4,150-square-foot pad building is part of Foothill Ranch Towne Centre, a regional shopping center in Orange County that includes major tenants Target, Hobby Lobby, Michaels, Old Navy and 99 Cents Only Stores. The sale price was $5.7 million.
Hanley Investment Group’s Executive Vice President Bill Asher and President Ed Hanley represented the seller, Spectrum Development Group based in Irvine, Calif. The buyer, a private investor from Newport Beach, Calif., was represented by John Carpenter of The 949 Group in Irvine, Calif.
“It was a record sale for a retail property of its type in south Orange County,” said Asher. The cap rate was not disclosed.
“It remains challenging in today’s market for investors to find quality stabilized retail investments in ‘A’ locations to purchase in Orange County,” commented Asher. “Inventory for quality retail leased to top-tier internet-resistant retailers is few and far between right now.”
Asher adds, “Due to the quality of the location, tenants and new long-term leases, we generated multiple qualified offers that created a competitive bidding environment that ultimately procured a local all-cash buyer. We negotiated a two-week contingency period with a 24-day closing.”
Newly remodeled in 2016, the building sits on .89 acres at the signalized entrance to the Foothill Ranch Towne Centre that benefits from monument signage along Portola Parkway and its close proximity to the State Route 241 freeway. Dunkin Donuts includes a combo Baskin Robbins format that occupies 2,150 square feet (that includes a drive-thru) and MOD Pizza occupies 2,000 square feet. Both tenants have brand new 10-year initial lease terms.
“The property has outstanding visibility and accessibility in the master planned Foothill Ranch trade area,” said Asher. “Furthermore, the Foothill Ranch Towne Centre has an excellent mix of internet-resistant tenants that cater to the daily needs of the local communities and Lake Forest’s daytime population of more than 105,000.”
Asher also notes that the shopping center benefits from the extremely affluent demographics in the area. The average household income is nearly $148,000 within a one-mile radius of the shopping center.
Foothill Ranch Towne Centre is located near the newly developed Baker Ranch master-plan community, which is made up of 11 different communities comprised of approximately 2,400 upscale homes, 430 apartment homes and 16,000 square feet of retail.
Dunkin’ Donuts is a market leader in the hot regular/decaf/flavored coffee, iced coffee, donut, bagel, muffin, and hard-serve ice cream categories. Dunkin’ Donuts has more than 12,000 restaurants in 45 countries. Baskin Robbins has nearly 7,800 restaurants in approximately 50 countries.
MOD Pizza, which offers custom artisan-style pizzas, is one of America’s fastest growing chain restaurants with more than 200 locations across 20 states as well as locations in the UK.
“The market for single-tenant and quasi-single-tenant assets with drive-thrus like the Dunkin’ Donuts/Baskin Robbins and MOD Pizza in Foothill Ranch remains strong in Southern California,” said Asher. “This type of investment continues to be a retail investment of choice for passive investors, especially leased to name brand food tenants.”
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.
Company Name: Hanley Investment Group
Contact Person: Bill Asher, Executive Vice President
Country: United States