June 19, 2018- 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 completed the sale of a two-tenant retail building occupied by Ross Dress For Less (dba dd’s Discounts) and Stars Gymnastics at 404-410 N. Azusa Avenue in Covina, California. The 39,159-square-foot building is part of the Covina Shopping Center, a community shopping center situated at the intersection of N. Azusa Avenue and W. San Bernardino Road. The shopping center includes other notable tenants Smart & Final Extra! and CVS/Pharmacy. The sale price for the two-tenant net-leased investment was $6.36 million.
Hanley Investment Group’s Executive Vice President Bill Asher and President Ed Hanley, along with Vice President Jeff Lefko, represented the seller, a family partnership based in Orange County, California. The buyer, Cecelia, LLC from Los Angeles, was represented by Moon Lim of Marcus & Millichap in Los Angeles, Calif.
The two-tenant inline building, which was built in 1979, sits on 3.83 acres and features a 27,359-square-foot dd’s Discounts and an 11,800-square-foot Star Gymnastics. dd’s Discounts has been a tenant in the building since 2005. Star Gymnastics, which has been in business for nearly 25 years in the area, relocated to Covina Shopping Center in 2017. The property is in the heart of the San Gabriel Valley, approximately 1.5 miles from Interstate 10 (218,000 cars per day), and easily accessible from the Interstate 210, Interstate 605, and State Route 57 freeways.
“We generated an incredible volume of interest due to the property being in Los Angeles County and more specifically the San Gabriel Valley,” said Asher. “The property was an attractive investment due to its dense infill location with over 470,000 people located in a five-mile radius and close proximity to four major freeways – Interstates 10, 210, 605, and State Route 57 freeways. The supply of quality retail assets that come up for sale in the San Gabriel Valley submarket is limited from year to year. When they become available, they are followed by a tremendous amount of demand, multiple offers, and top-level pricing.”
Asher notes Ross is a Fortune 500 company and the largest off-price apparel and home fashion chain in the United States with 1,409 locations in 37 states, the District of Columbia, and Guam. The company also operates 213 dd’s DISCOUNTS® in 16 states. Ross (including dd’s discounts) recently opened 92 stores for a total of 1,627 locations in the US. The goal for Ross is to reach 2,500 total stores in the future, Asher says.
“The investment being anchored by dd’s Discounts, a tenant at the property for the past 13 years with a corporate guaranty from parent company Ross Stores, Inc., was another significant driver to the high level of interest in the property,” Asher said. “In a time where we continue to see more big-box retail store closures, Ross is a tenant that is thriving and looked upon very favorably by retail investors in today’s market.”
Asher continues, “It continues to be a challenge in today’s market for investors to find quality, stabilized retail investments in ‘A’ locations to purchase in Los Angeles County. We expect that the market for single-tenant and two-tenant assets in quality locations, especially those leased to name brand tenants that are internet-resistant and have long-term leases, will remain strong in Southern California throughout 2018.”