FOOTHILL RANCH, Calif. – 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 has completed the sale of the Chipotle-anchored multi-tenant retail pad located at Foothill Ranch Towne Centre in Orange County, California. Foothill Ranch Towne Centre is a regional power center anchored by Walmart Supercenter, Target, 99 Cents Only, Hobby Lobby, JOANN, Michaels, Old Navy, PetSmart and Regal Cinemas. The sale price was $8.2 million, which represented a 4.58% cap rate, a record-low cap rate and a record-high price per square foot for a multi-tenant pad (three tenants or more) in South Orange County, California.
Hanley Investment Group’s Executive Vice Presidents Bill Asher and Jeff Lefko represented the seller, Thomas English Real Estate based in Indianapolis, Indiana. The buyer was a private investor from Glendale, California and was represented by Jack Nersesian at DAUM Commercial Real Estate Services in Los Angeles.
“We generated multiple competitive and qualified offers that facilitated securing a Los Angeles-based 1031 exchange buyer at 98% of the asking price,” said Asher.
The 6,873-square-foot, multi-tenant retail building is located at 26592 Towne Centre Drive on 0.99 acres in Foothill Ranch. The building is 100%-leased to Chipotle with a drive-thru, Firehouse Subs and Guidepost Montessori. The property was built in 2004 and renovated in 2020. According to Asher, all three tenants are on brand-new, long-term leases.
“Chipotle is one of the most sought-after retail tenants from investors in today’s market,” said Asher. “This particular Chipotle relocated from an established dine-in only location within Foothill Ranch Towne Centre to take advantage of increased sales with a new drive-thru. The ‘Chipotlane’ concept, whether a single-tenant or part of a multi-tenant investment, will continue to be highly desired by buyers as approximately 70% of business for quick-service restaurants come through the drive-thru.”
The property is centrally located within the Foothill Ranch Towne Centre and sits at a signalized entrance along Towne Centre Drive, benefitting from proximity to State Route 241 Freeway. The shopping center serves prominent neighboring cities and communities including Coto de Caza, Dove Canyon, Irvine, Irvine Great Park, Mission Viejo, Portola Springs and Rancho Santa Margarita. Within a one-mile radius of the property, the average household income is more than $150,000 and there is a projected population growth of more than 31% in the next five years.
Foothill Ranch is home to Oakley, Kawasaki Motors, Nike, LoanDepot, Panasonic Avionics, Cox Communications, Frito-Lay, Protab Laboratories, Kaiser Aluminum, Tae Technologies and more.
Earlier in the summer, Hanley Investment Group completed the sale of the Michaels at Foothill Ranch Towne Centre as a single-tenant net-leased investment. The sale price was $4,850,000.
About Hanley Investment Group
Hanley Investment Group Real Estate Advisors is a real estate brokerage and advisory services company with an $8.8 billion transaction track record that specializes in the sale of retail properties nationwide. Our expertise, proven track record, and unwavering dedication to putting clients’ needs first set us apart in the industry. Hanley Investment Group creates value by delivering exceptional results through the use of property-specific marketing strategies, cutting-edge technology, and local market knowledge. Our nationwide relationships with investors, developers, institutions, franchisees, brokers, and 1031 exchange buyers are unparalleled in the industry, translating into maximum exposure and pricing for each property. With unmatched service, Hanley Investment Group has redefined the experience of selling retail investment properties.