ACQUISITION ALERT
A leading California commercial real estate investment and management company specializing in retail, announced today the acquisition of a single-tenant retail investment occupied by 99 Cents Only Stores totaling 28,240 square feet on 2.09 acres in Chino Hills, California. The purchase price was $2.5 million.
99 Cents Only is located at 4050 Chino Hills Parkway in the Chino Hills Parkway shopping center, at the signalized intersection of Chino Hills Parkway and Pipeline Avenue, adjacent the 71 Chino Valley Freeway on/off-ramp.
According to Managing General Partner Patrick Wood of Wood Investments Companies, “Wood Investments Companies recognized a unique opportunity to purchase an infill, essential needs property at a discount to replacement cost in a highly desirable Chino Hills location. The current in-place rent is below-market providing Wood Investments Companies with the ability to capture significant future upside upon the expiration of the 99 Cents Only lease.”
Wood Investments Companies plans to hold the property for cash flow until the end of the 99 Cents Only lease and will either negotiate a new lease with 99 Cents Only or another essential needs/grocery tenant at market rents. The execution of the business plan will take approximately three to five years to complete.
“This is a great value-opportunity for us in the established trade area of Chino Hills,” said Wood. “We acquired the store at well-below the current replacement cost with well-below market rent, providing significant future upside.”
According to Wood, Grocery Outlet recently signed a lease in the former Big Lots space at the Chino Hills Parkway shopping center, proving the tremendous opportunity. Other tenants in the shopping center include 7-Eleven, Jack in the Box, AutoZone and H&R Block. Chino Hills Parkway Center is located in a dominant retail trade area that is surrounded by tremendous residential growth, superior existing demographics and features strong traffic counts (50,400 CPD) along Chino Hills Parkway.
99 Cents Only is also located across the street from Chino Hills Marketplace and includes Smart & Final Extra!, Turner’s Outdoorsman, Rite Aid, Dollar Tree, Circle K, Starbucks, Chase, Bank of America, The Habit Burger Grill, Taco Bell, El Pollo Loco and Carl’s Jr.
The 28,240-square-foot building, which was originally built in 1974 for Alpha Beta, allows for multiple re-tenanting strategies or even subdividing the space. “Chino Hills is poised to benefit from the tremendous growth that is occurring in surrounding cities including Ontario and Rancho Cucamonga,” Wood noted.
The seller was represented by Patrick Wade, Alex Kozakov and Jake Hayutin of CBRE’s South Bay office in El Segundo, California. Wood Investments Companies, the buyer, was self-represented. Private equity real estate investment firm, JDI Realty, LLC of Chicago, is the lender.
“Wood Investments Companies has continued to successfully acquire essential retail value-add and core-plus real estate,” Wood stated. “Despite COVID-19 causing significant disruption in the commercial real estate and mortgage markets, Wood Investments Companies is still equipped to close on new opportunities. Wood Investments Companies has significant expansion plans and will be an active buyer in the coming year.”
Late last year, Wood Investments Companies purchased a two-property retail investment totaling nearly 300,000 square feet and 31.7 acres in Twin Falls, Idaho; a two-tenant retail investment occupied by Food 4 Less and Ross Dress For Less totaling nearly 94,000 square feet on 7.45 acres in San Bernardino, California; and a 7,002-square-foot, single-tenant, net-lease property occupied by Aaron’s in Bakersfield, California.
