A fully occupied retail building in South El Monte is adding to a number of retail assets in the Greater Los Angeles area that have been placed on the market for sale. According to a property listing from CBRE, the 22,846 square foot AutoZone Plaza has been placed up for sale, with guidance pricing set at $11.76 million, or about $515 per square foot.
The property is located at 1933-1961 Durfee Avenue on nearly two acres of land. The property was initially built in the 1960s but has since been remodeled in 2018.
AutoZone Plaza is currently leased to a mix of retailers, including AutoZone, Jack in the Box, Dunkin Donuts, AT&T, Waba Grill and others. In total, the property offers a net operating income of $530,332. The listing also shows that the current lease rate at the property is more than 50 percent below market rent in comparison to similar drive thru properties in the immediate area, leaving potential room for growth.
“Through the lease-up of vacant space, low in-place rents and embedded rental increases, the net operating income is projected to nearly double over the expected hold period, proving a strong hedge against inflation and increasing an investor’s cash-on-cash returns,” the offering memorandum states.
Located at the intersection of Durfee Avenue and Rush Street, the retail center is seen by about 41,600 cars per day. The property also is located within a large trade area with nearby retailers like Superior Grocers, 99 Cent Only, CVS, Marshalls, Starbucks, Panda Express and many others.
“In just six decades, the South El Monte has matured into a viable commercial and industrial base, with over 2,400 businesses due the City having a diverse land use pattern and excellent freeway accessibility to the 10, 60, and 605 freeways which provide ready access to points throughout Southern California,” the offering memorandum states.