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Commercial Real Estate

Progressive Real Estate Partners Leases Anchor Space to Planet Fitness in Ontario, CA

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Planet Fitness is projected to open in early 2020 & will occupy a portion of a former Kmart store

Rancho Cucamonga, CA – July 16, 2019  – Progressive Real Estate Partners, the leading Inland Empire retail brokerage firm, announced today that it has completed a lease with Planet Fitness for a new 24,345 square-foot location at 1670 E. Fourth Street in Ontario, California.

Planet Fitness will be occupying a portion of a former approximately 100,000 square-foot Kmart store that is being sub-divided into three anchor spaces. Progressive Real Estate Partners is currently marketing the other two spaces.  The site is part of the Vineyard Freeway Center with excellent identity and visibility to over 237,000 cars per day on the heavily traveled I-10 freeway which is a major east/west thoroughfare running from Los Angeles to Palm Springs.

Progressive Real Estate Partners’ Senior VP Paul Galmarini and VP of Leasing and Sales Paul Su exclusively marketed the property and represented the lessor in the transaction.  Townsand Cropsey with SRS Real Estate represented Planet Fitness.

The new fitness center is expected to open in early 2020 and will be operated by one of the top Planet Fitness franchisees with over 30 locations.  Members will enjoy a wide selection of high-quality, Planet Fitness-branded cardio, circuit and weight-training equipment. The gym will also feature a Beauty Angels area with tanning booths, massage chairs and hydro massage beds.  With over 1800 locations and 13.6 million members, Planet Fitness is well-known for its affordable $10 a month standard membership plan and commitment to a welcoming, non-intimidating environment called the “Judgement Free Zone”.

The 151,000 square-foot Vineyard Freeway Center is currently undergoing an extensive exterior renovation that will include new storefront facades, the addition of more parking and upgraded pylon and monument signage.   The center is occupied by a variety of retail, service and food users including a recently opened Golden Corral restaurant.  The dense in-fill location also enjoys excellent demographics with more than 386,000 residents with an average household income of $73,000+ in a 5-mile radius.  Furthermore, there is a strong daytime population of 190,000+ employees within 5-miles.

According to Paul Su, “We faced a number of hurdles in leasing this space and worked closely with the landlord to make the deal happen.  In addition to facilitating the termination of Kmart’s lease, the CC&Rs had to be modified to allow the use which also required obtaining the City of Ontario’s approval.”

Paul Galmarini added, “The strong demographics, excellent location, outstanding freeway signage and visibility were all very attractive to Planet Fitness making this a perfect site for them to open a new location. It is also good news for the shopping center having a new anchor tenant that will help drive more traffic to the property. As consumers have become more health and wellness conscious, fitness centers have rapidly become popular anchor tenants.” 

 

About Progressive Real Estate Partners

Progressive Real Estate Partners (PREP) is a boutique commercial brokerage firm headquartered in Rancho Cucamonga, California. Founded in 2008, the firm specializes in the leasing and sale of retail properties in Southern California’s Inland Empire market.  The office is also the exclusive Inland Empire representative of the Retail Brokers Network (RBN). Since the firm’s inception Progressive has completed over 1000 lease and sales transactions in over 35 cities throughout the region. Progressive uses the latest marketing and brokerage techniques to help retailers and property owners achieve their real estate goals.  For further information visit www.progressiverep.com.

You can also follow Progressive Real Estate Partners on LinkedinTwitter, Instagram or Facebook

The Inland Empire Business Journal (IEBJ) is the official business news publication of Southern California’s Inland Empire region - covering San Bernardino & Riverside Counties.

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Commercial Real Estate

The Evolution of Retail: A Comprehensive Look at the Inland Empire’s Newest Shopping Center

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A Visionary Development in the Heart of the Inland Empire

Wes Fifield, the owner of Panorama Development LLC, a family-run commercial real estate development company, has masterfully crafted a new commercial hub in Jurupa Valley that encapsulates the growing demands and evolving landscape of retail in the Inland Empire. This latest project not only fills a crucial need for the community by offering a mix of shopping and dining options but also sets a benchmark for future developments in the region.

Meeting Community Needs in a Growing Region

As the Inland Empire continues to experience rapid population growth, the demand for quality retail and dining experiences has surged. Fifield and his team recognized this gap and embarked on a multi-year journey to bring this ambitious project to life. The shopping center, anchored by major tenants such as Target, Starbucks, Raising Cane’s, In-N-Out, and Ross, is poised to become a hub for shopping, dining, and social interaction.

“This project fills a crucial need for the community,” Fifield explained. “For many residents, there simply hasn’t been a convenient place to shop and dine. This center will be the anchor for the area, serving as a destination for both convenience and experience.”

Strategic Development and Adaptation

The development of the shopping center is a story of strategic planning and adaptation. Originally, the site comprised 30 acres of vacant land next to a freeway—a rare find in California. The acquisition in 2021 and the subsequent development phases illustrate Fifield’s ability to navigate and leverage complex challenges, including environmental and infrastructural hurdles.

A significant moment in the project’s timeline was the integration of Target as a key tenant. “Typically, you start with an anchor like Target and build around it. In our case, Target came in later, which required us to rethink and reconfigure much of the project. While challenging, it was a welcome opportunity to include such a high-quality tenant,” Fifield remarked.

Overcoming Challenges and Seizing Opportunities

The COVID-19 pandemic presented unexpected challenges and opportunities. Fifield noted that the pandemic allowed for more flexible tenant negotiations and ultimately aided the project by extending critical timelines. This adaptability was crucial in achieving a diverse tenant mix and in meeting the project’s expansive vision.

Reflecting on the broader retail environment, Fifield acknowledged the ongoing shifts in consumer behavior and the industry’s competitive landscape. “Retail has been redefined in recent years,” he noted. “But the pandemic showed us that people still value the social and experiential aspects of shopping. They want to get out, spend time with their families, and explore. That’s what we’re providing here.”

Economic Impact and Future Prospects

The shopping center’s development has had a substantial economic impact, creating jobs, increasing city revenue, and revitalizing the local retail offering. The city’s leadership and community members have actively supported the project, recognizing its potential to transform the local economy.

Looking ahead, Fifield remains optimistic about the growth opportunities in the Inland Empire and the role of thoughtful, community-focused developments in meeting the needs of its diverse population. “For us, it’s about creating quality spaces that people love and use for years to come,” Fifield concluded. “This project is personal—it’s about giving back to the community and helping the Inland Empire continue its incredible growth story.”

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Commercial Real Estate Transactions

Hanley Investment Group Arranges Sale of New Chipotle Drive-Thru-Anchored Pad in Riverside, Calif., for $5.84 Million

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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.”

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Commercial Real Estate Transactions

SRS Real Estate Partners Announces Record-Breaking $6.15 Million Ground Lease Sale of a New Construction Chick-fil-A Property in Murrieta, California

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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.

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