By Ariela Moraru
Los Angeles—Hanley Investment Group Real Estate Advisors arranged the sale of a new single-tenant absolute net-lease Rite Aid property located at 28995 Newport Road in Menifee, Calif. The asset traded for $9 million with a 4.72 percent cap rate.
“The sale of the Rite Aid represents the lowest cap rate for a single-tenant Rite Aid in the Inland Empire ever,” said Executive Vice President Kevin Fryman in prepared remarks. “It was also one of the lowest cap rates for a fee-simple Rite Aid nationwide.”
Fryman represented the seller, Ontario, Calif.-based Parkcrest Construction Inc. First Vice President Investments Ron Duong of Marcus & Millichap’s Newport Beach, Calif. office represented the buyer, a private investor. Rite Aid has nearly 20 years remaining on the initial lease with increases every 10 years.
The new 17,185-square-foot freestanding building was completed in late 2016 and features a drive-thru. It is situated on a 1.63-acre parcel at the southwest corner of Newport Road and Menifee Road. Fort Worth, Texas-based Triple Net Financial provided 100 percent of cost construction financing for the development of this project.
Newport Road is the main route in the Temecula Valley, connecting Interstate 15 in Lake Elsinore to Interstate 215 in Menifee and the surrounding cities. There are no competing drug stores in the immediate trade area. National retailers along Newport Road include Super Target, Lowe’s, Ralphs, Best Buy and many more.
Menifee is the second fastest growing city in Southwest Riverside County. Population is expected to grow by 115 percent growth within the next two years. Average household income within three miles of the property reaches $73,000. Furthermore, Mount San Jacinto Community College, with more than 15,000 students, is one mile from the property.
Image courtesy of Hanley