COMMERCIAL REAL ESTATE TRANSACTION ALERT
Single-Tenant Sit ‘n Sleep Sells for $3,250,000 in the Break-up Strategy Executed at Highland Village Shopping Center
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 has arranged the sale of a new construction, single-tenant retail building occupied by Sit ‘n Sleep at Highland Village Shopping Center, a new Sprouts-anchored shopping center in Fontana, California. Hanley Investment Group has sold a total of $30 million in retail properties at Highland Village Shopping Center in Fontana, California.
Hanley Investment Group’s Executive Vice Presidents Kevin Fryman, Bill Asher and Jeff Lefko represented the seller, Adler Realty Investments, who completed the ground-up shopping center development in 2018-2019. The buyer was a private 1031 exchange investor based in the Inland Empire.
The sale of the single-tenant, triple-net leased 8,400-square-foot retail property occupied by Sit ‘n Sleep and built in 2019 is situated on 1.03 acres adjacent to Sprouts at 16948 S. Highland Avenue. The purchase price was $3,250,000.
Sit ‘n Sleep is the largest family-owned mattress retailer in California and was founded in 1979 by Larry Miller and his father Phillip Miller. Today, the chain is run by Larry Miller as CEO and Nelson Bercier, Sit ‘n Sleep President who work in tandem to manage the day-to-day operations. Now, the 41-year-old company has 36 stores located throughout Southern California.
“Sit ‘n Sleep benefitted when consumers started investing in new mattresses and furniture during the COVID-19 pandemic shutdowns and we anticipate that consumers’ focus on the home will continue, and that will bring more spending on home products like mattresses,” noted Fryman.
In addition to a 30,000-square-foot Sprouts Farmers Market, the shopping center includes Jack in the Box, Raising Cane’s Chicken Fingers, Jersey Mike’s Subs, Café Rio, Oggi’s Restaurant, Pacific Dental, Quick Quack Car Wash, Mountain View Tire & Auto Service. The shopping center is immediately adjacent to the 210 Freeway at the Sierra Avenue entrance/exit.
Last year, Hanley Investment Group’s Fryman, Asher and Lefko arranged the sales of a 7,500-square-foot multi-tenant retail shop building adjacent to Sprouts and a new Quick Quack Car Wash ground lease at the Highland Village Shopping Center. Hanley Investment Group’s sale of Quick Quack Car Wash was the first single-tenant Quick Quack to sell as a net-leased investment in California. In 2019, Fryman, Asher and Lefko arranged the sales of Sprouts, Mountain View Tire & Auto Service, Raising Cane’s and Jack in the Box, each as separate, single-tenant transactions at Highland Village Shopping Center.
“We were able to maximize value for the seller through individual sales to private, non-institutional investors in a price range of $2 million to $10 million, a price range that greatly appeals to the largest buyer pool in the retail investment industry,” said Asher. “Investors recognized that this shopping center and its location and demographics offered long-term security and stability in a growing area.”
Asher noted there are 325,000 people within a 5-mile radius and an average household income of $89,000 within a 1-mile radius of the shopping center.
The sale of Sit ‘n Sleep in Fontana marks the second sale of a single-tenant mattress investment sold in California since March of 2020. Hanley Investment Group also sold the previous single-tenant mattress investment property, a Mattress Firm in Mountain View.