Two Retail Pad Buildings Trade for $5.6M at Walgreens-Anchored Shopping Center in Inland Empire

By: Hanley Investment Group Real Estate Advisors
Multi-tenant retail pad building at 2645 E. Riverside Drive in Ontario.
Multi-tenant retail pad building at 2645 E. Riverside Drive in Ontario.
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Hanley Investment Group

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Ontario - California - US

ONTARIO, Calif. - April 15, 2019 - PRLog -- Hanley Investment Group Real Estate Advisors, a nationally recognized real estate brokerage and advisory firm specializing in retail property sales, has completed the sale of two retail pad buildings totaling 21,591 square feet in separate transactions at a Walgreens-anchored neighborhood center built in 2007. Hanley Investment Group Executive Vice President Kevin Fryman represented the seller, a private developer based in Ontario, Calif.

"We executed a break-up strategy of two parcels to maximize the value for the seller and procured multiple qualified offers within the first month of marketing both pads," said Fryman. "We achieved an aggressive cap rate for both sales, demonstrating that well-located, multi-tenant retail assets with food and service-based, internet-resistant tenants are still in high demand."

Located at 2645 East Riverside Drive in Ontario, Fryman arranged the sale of a two-tenant, 13,381-square-foot pad building on 1.33 acres shadow-anchored by Walgreens. The 100-percent occupied building includes O'Reilly Auto Parts and a corporate office. O'Reilly occupies 7,200 square feet and recently signed a new, long-term lease last year. The buyer, a private investor from Southern California, was represented by Jeff Lin of Marcus and Millichap in Ontario. The seller was represented by Fryman.  The purchase price was $3,220,000.

Fryman also arranged the sale of an 8,210-square-foot multi-tenant retail pad building on 1.15 acres at the Walgreens-anchored neighborhood center. Located at 2665 East Riverside Drive in Ontario, the 100-percent occupied seven-tenant building includes Subway, Wonderful Massage, Empire Barbers, IE Vapes, First Rate Staffing, Les Tax and a management company. The buyer, a private investor from Temple City, Calif., was represented by Watson Yeh of EZ Max Realty in Temple City. The seller was represented by Fryman. The purchase price was $2,400,000.

"Investors and the eventual buyers were very attracted to the overall strength of the location and the history of Walgreens being located at the center since its opening in 2007," said Fryman. Other national and regional tenants that are located within the Walgreens-anchored shopping center, but not included in either transaction, are Chase Bank, Juice it Up!, Papa John's Pizza, Subway, The UPS Store and Verizon.

The shopping center is situated at the signalized intersection of South Archibald Avenue and East Riverside Drive with 36,000 cars per day. Other national tenants located at the intersection include AutoZone, Jack in the Box, Little Caesars, Ralphs grocery store and Rite Aid.

According to Fryman, the properties benefit from an affluent, high-growth demographic. "There are 269,000 people within a five-mile radius with an average household income of $92,000 within a one-mile radius. The population grew by a whopping 49 percent between 2000-2018 with projected growth of 8 percent between 2018-2023," noted Fryman. The properties are located across from Ontario Ranch, the largest planned community in Southern California. Ontario Ranch will consist of 46,000 homes with 150,000 residents at build out.

The properties are also easily accessible to State Route 60, which is located one mile south of the center, connecting the Inland Empire to Downtown Los Angeles.

"We will continue to see the implementation of the break-up strategy of larger shopping centers as sellers look to capitalize on a larger buyer pool that exists for properties under $5 million," said Fryman. "However, the break-up strategy has some complexities, requiring a broker who has experience in this execution to reap the financial rewards."

About Hanley Investment Group
Hanley Investment Group Real Estate Advisors is a retail investment advisory firm with a $6+ billion transaction track record nationwide, who works closely with individual investors, lending institutions, developers, and institutional property owners in every facet of the transaction to ensure that the highest value is achieved. For more information, visit

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