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 arranged the sale of two stand-alone buildings occupied by a Chipotle Mexican Grill and the adjacent Starbucks Drive-Thru in Rancho Cucamonga, California. The sales price was $6.22 million.

Hanley Investment Group’s Executive Vice Presidents Bill Asher and Jeff Lefko represented the seller, Chase Partners Ltd., based in Glendale, California. The buyer, a private investor based in Los Angeles, was represented by Shirley Kim at Epique Realty, also of Los Angeles.

The property involved a complete rehabilitation of the facility and the expansion of Starbucks by the developer, Chase Partners Ltd., a leading retail and industrial developer in Southern California since 1993. Chase is an active developer of Starbucks and Chipotle sites, as well as other name-brand retail developments, with a dozen projects currently underway. Michael Carter served as the project manager for Chase.

“We generated multiple qualified offers primarily from Southern California-based buyers and leveraged our extensive broker relationships to procure a repeat all-cash buyer, ensuring a smooth and timely closing by year-end,” said Asher.

Built in 2003, the two freestanding properties occupied by a 2,508-square-foot Chipotle Mexican Grill and a 4,000-square-foot Starbucks Drive-Thru sit on a 1.31-acre parcel located at 10811-10831 Foothill Boulevard, near the signalized intersection of Foothill Boulevard (U.S. Route 66 with over 32,000 cars per day) and Aspen Avenue.

Starbucks (NASDAQ: SBUX) recently signed a new 10-year extension, expanding into the adjacent 2,500-square-foot space for a total of 4,000 square feet, showing its continued long-term commitment to this location. The Rancho Cucamonga Starbucks is a top 15% location nationwide, based on customer traffic (Placer.ai). Starbucks is the largest coffee house chain globally, with approximately 40,199 stores in 84 countries, and Fortune ranked it as one of the “World’s Most Admired Companies” from 2009 to 2024.

Chipotle (NYSE: CMG) is ranked on the Fortune 500 and is recognized on Fortune’s Most Admired Companies 2024 list and Time Magazine’s Most Influential Companies. There are over 3,600 restaurants in the United States, Canada, the United Kingdom, France, Germany, and Kuwait and it is the only restaurant company of its size that owns and operates all its restaurants in North America and Europe.

According to Asher, Chipotle has nine years remaining on its lease, having recently extended early for five years, demonstrating its ongoing investment in the site. The Rancho Cucamonga Chipotle is a top 25% location in California, based on customer traffic (Placer.ai).

Chipotle and Starbucks are located across from Terra Vista Town Center, one of Rancho Cucamonga’s most established and premier regional shopping centers. The 645,000-square-foot Terra Vista Town Center is ranked within the top 25% of power centers nationwide, based on customer traffic, according to Placer.ai. The center is anchored by Target, Hobby Lobby, and LA Fitness, along with other national tenants including Ross Dress for Less, Michaels, HomeGoods, Panera Bread, Wells Fargo, CVS, Bank of America, and Five Below. The property is ideally situated in the center of the city within minutes of the 10, 15, and 215 freeways. The property is located next to Rancho Cucamonga’s 44 million square feet of office and industrial space, which combined employs over 65,000 employees.

The population of Rancho Cucamonga grew 53.5% from 2010 to 2020. Within one mile of the property, the population experienced a 317.8% growth in population from 2010 to 2020. More than 276,000 residents with an average household income in excess of nearly $113,000 are within a five-mile radius.

Asher added, “It was one of our most sought-after listings in 2024, receiving significant interest and activity from both buyers and brokers. The combination of two corporate leases with two of the most recognizable national credit QSR tenants in the U.S., both with a 21-year operating history at the site, made it a highly desirable investment.”

Strategic Growth: Highlighting the Appeal of Prime Retail Investments in Riverside’s Expanding Market

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 arranged the sale of a recently constructed, three-tenant net-leased investment anchored by a Chipotle Mexican Grill with a drive-thru “Chipotlane” in Riverside, California. The property is situated directly off the Interstate 215 on/off ramps (154,680 cars per day). Adjacent to the Interstate 215 is March Air Reserve Base, a 2,075-acre facility with over 8,000 personnel assigned to it and a 1,750-civilian population.

Hanley Investment Group’s Executive Vice President Eric Wohl and Associate CJ Kiehler represented the seller and developer, Greens Development Inc., of Irvine, California. The buyer, a Los Angeles-based 1031 exchange investor, was represented by Justin Altemus of The Altemus Company in Los Angeles. The sale price was $5.84 million.

“As part of this off-market transaction, we successfully sourced a 1031 exchange buyer who needed to close quickly and ended up closing escrow while BHC Chicken, one of the pad building’s tenants, was still completing their buildout,” noted Wohl.

The 6,300-square-foot Chipotle-anchored pad building, completed in 2020, sits on a 0.90-acre parcel at 22430 Van Buren Boulevard in Riverside. The three-tenant building also includes MA Dental and BHC Chicken, which is expected to open in October.

The pad building is a part of Veteran’s Plaza, a community shopping center and hotel complex developed by Greens Development Inc. It includes In-N-Out, a four-tenant Starbucks-anchored multi-tenant retail pad building, Hampton Inn + Home2 Suites, Circle K convenience store with a 76 gas station and others, promoting crossover shopping.

The Chipotle-anchored pad building is situated between Hampton Inn + Home2 Suites and In-N-Out near the signalized intersection of Van Buren and Opportunity Road (over 40,000 cars per day). Traffic on Van Buren Boulevard is projected to increase to 72,000 cars per day. The Interstate 215 and Van Buren interchange was completely remodeled at a cost exceeding $32 million. The site also benefits from excellent freeway signage along Interstate 215.

Veteran’s Plaza is located within Meridian Business Park, a 1,290-acre master-planned commerce and distribution center planned to have 16 million square feet of building space, creating up to 18,000 jobs. Current tenants include Amazon, UPS, Sysco, Kaiser Permanente, Kia Automotive, McLane Foods and others.

There are over 232,000 residents with an average household income in excess of $91,000 within a five-mile radius of the property. The daytime population exceeds 189,000, providing an additional consumer base. Lake Perris, an 8,800-acre state recreation area, is just two exits south off of Interstate 215 and is known for its boating, hiking, fishing, swimming, picnicking, rock climbing, horseback riding and camping.

In May 2023, Hanley Investment Group arranged the sale of the Starbucks Drive-Thru-anchored property at Veterans Plaza for the same seller.

“With the current volatile market and economic conditions, investors are seeking ‘safe-haven’ investments in robust markets to protect and grow their equity,” noted Wohl. “This Chipotle-anchored pad, located adjacent to a Starbucks-anchored multi-tenant retail pad and In-N-Out, exemplifies the type of product attracting many investors in the present market landscape.”

Commercial Real Estate Transaction Alert

SRS Real Estate Partners Capital Markets has completed the $6.15 million ground lease (land ownership) sale of a 5,000-square-foot Chick-fil-A property located at 27960 Clinton Keith Road in Murrieta, Calif. The new construction property recently opened for business in March this year and has a 15-year ground lease in place.

The transaction marks two sales records. First, at 3.9%, it is the lowest cap rate for a Chick-fil-A property sold this year nationwide. Second, the sale is the lowest cap rate this year for all Quick Service Restaurant (QSR) sales in Southern California with annual rent above $200,000.

SRS Capital Markets First Vice President Winston Guest and Managing Principals Matthew Mousavi and Patrick Luther represented the seller and developer of the property, Newport Beach, CA-based Sage Investco, as well as the all-cash buyer, a private family trust from California.

The Chick-fil-A property sale is part of a break-up strategy valued in excess of $20 million for the class A pads at The Vineyard Shopping Center, a 26.3-acre retail project anchored by Costco Wholesale and ALDI near Interstate 15. Other parcels being sold by SRS include Chase Bank, Chipotle and Verizon Wireless, Ono Hawaiian BBQ, and Ramona Tires.

“Despite current market conditions, we are seeing specific segments of the buyer pool come forward seeking high-quality real estate and certain credits, as was the case here with this Chick-fil-A sale that was acquired by a repeat non-1031 client for a long-term hold,” said Mousavi. “Our SRS team is pleased to complete this record-breaking sale for both parties and we look forward to the completion and sale of the remaining parcels.”

“High profile retail developments like this in Southern California can take years to get to this point and are scarcer as markets saturate and become further developed,” added Guest. “The remaining parcels for sale adjacent to this Chick-fil-A represent some of the best real estate available, and we expect the demand for those to increase as a result of this record-breaking sale.”

Situated on 2.09 acres, the property is strategically positioned within an expanding retail corridor with numerous plans for additional development. Nearby development projects include a 522 home single-family residential project in Murrieta Hills; a 210-unit apartment complex near Interstate 15; and a commercial and retail center, among others.

According to Technomic Ignite, since 2018 Chick-fil-A has doubled its total sales volume. Last year the chain generated $21.58 billion in sales which is a 14.7% increase over the previous year’s $18.81 billion and over 43% over 2021’s $15 billion. This brand has also continued to gain market share over its biggest competitors in the Quick Service Restaurant (QSR) chicken sandwich category – Popeyes and KFC. Further, Chick-fil-A released its latest Franchisee Disclosure last month which showed that the average unit volume (AUV) for non-mall locations in 2023 reached a record $9.3 million, an 8.1% increase over the previous record of $8.67 million in 2022.

Over the past 12 months, SRS has sold Chick-fil-A assets in Arizona, California, Texas, Michigan, Florida, Kansas, New Jersey and Georgia, and has locations on the market in California, Florida, Texas, Maryland, Arkansas, on the market.

Year to date, SRS Capital Markets has completed approximately $840 million in deal volume comprised of over 200 transactions in 34 states. SRS currently has in excess of 698 properties actively on the market with a market value surpassing $3.7 billion.