Retail, Net Lease Sales Approach $19M

(To read more on the net lease market, click here.)

COACHELLA, CA-Private investors have acquired a 122,000-sf retail center here for $14.2 million and buyers in a separate deal have paid $4.6 million for a retail asset in Huntington Beach, according to brokers from Grubb & Ellis and Hanley Brown Group.

In the Coachella transaction, Ken McLeod and Tom Lagos of the West Los Angeles office of Grubb & Ellis report that a local private investor purchased Coachella Shopping Center, a 121,762-sf center on 489,614 sf of land at 49617-49939 Harrison St. The asset was sold by a Los Angeles-based, private family trust.

The property, which was 100% leased at the time of sale, was built in 1973 and was renovated in 1990. Tenants include Rite Aid and Coachella Ranch Market. McLeod and Lagos represented the buyer and the seller.

In the Huntington Beach transaction, Eric Wohl of Hanley Brown reports that a private buyer based in Huntington Beach bought a 16,490-sf Leed's Mattress Superstore at the northwest corner of Beach Boulevard and Yorktown Avenue from Team Construction in a net lease deal. Built in 1965 on a 40,890-sf lot, the single-tenant building is situated at one of the busiest intersections in Huntington Beach with more than 92,000 cars passing the property daily.

Wohl says that the investment provides the buyer with "an excellent opportunity to capitalize on a single tenant triple-net lease at market rent in a strong location." The property presents the buyer with a stable and secure cash flow with the potential to achieve rent growth and appreciation over time, he says.