1031 Exchange Features Long-Term Ground Lease with McDonald’s and Newly Constructed Drive-Thru Restaurant  

Valore Ventures has closed on the ground lease sale of a new, 3,895-square-foot dual lane drive-thru restaurant at 18150 Arrow Boulevard in Fontana, California. The 20-year, nearly one-acre ground lease was signed with leading global food-service retailer McDonald’s in September and construction was completed late December. 

SRS managing principals Matthew Mousavi and Patrick Luther represented Valore Ventures in the 1031 exchange transaction that closed at a cap rate of 3.7 percent. The buyer, a private trust, was represented by Marcus & Millichap Senior Vice President Joe Linkogle.

“We purchased the parcel in July, and now are pleased to deliver a terrific location for McDonald’s, which plans to open its doors shortly,” said Kenny De Angelis, principal of Valore Ventures. 

The quick service restaurant is optimally positioned at the intersection of Locust Avenue within a Stater Bros.-anchored shopping center along a major retail thoroughfare and minutes from downtown Fontana. 

“Valore Ventures is looking at additional single-tenant, triple-net-lease acquisition opportunities and development sites,” noted DeAngelis.

Beverly Hills-based Valore Ventures invests in operating companies, commercial real estate and the redevelopment of diverse value-add properties.

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.”

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.”