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California  + Inland Empire  + Retail  | 

Starbucks at Prominent Intersection Sets Records in Sale

A new Starbucks drive-thru anchored building at 2067 E. Highland Ave. in San Bernardino recently sold to a local private investor in a 1031-Exchange transaction. The sales price of $4.65 million represents a record-setting $919 per square feet and record 5.14 percent cap rate for a multi-tenant retail property in San Bernardino County. Built in 2020, the 5,058-square-foot building is fully leased as part of a Cardenas and Planet Fitness-anchored neighborhood center which is located at one of the trade area’s most prominent retail intersections.

Progressive Real Estate Partners’ vice president of investment sales Greg Bedell exclusively marketed the property and represented the sellers, Sage Investco and Pacific Riviera Properties. The buyer was represented by Choong Bruce Lee with NewStar Realty and Hope Kim, an independent broker.

In addition to brokering the sale of the property, the Progressive Real Estate Partners leasing team of Paul Galmarini and Roxy Klein were instrumental in creating significant value through the lease-up of the last space to Lefty’s Cheesesteak, adding more than $1 million in value to the property.    

The neighborhood center also features a variety of other shops and services including a new Wendy’s drive-thru that opened in late 2020. Other retailers at the intersection include 99 Cent Only, CVS, Walgreens, Big 5, Dollar Tree, dd’s Discounts, Harbor Freight and Chase Bank. The center benefits from its location less than one-fourth mile from the I-210 freeway at the signalized intersection of Highland Avenue and Sterling Avenue with visibility to more than 39,000 vehicles per day.

“The brand new construction and Starbucks drive-thru anchor made this asset particularly attractive.  We generated multiple quality offers and ultimately the property traded within 97 percent of the asking price at a record cap rate,” says Bedell. “This sale further demonstrates investor demand for quality retail assets located at highly trafficked daily needs centers within the Inland Empire.”

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Greg Bedell

About Lisa Brown

Lisa Brown has decades of experience in corporate communications and marketing management with organizations including Coldwell Banker Residential, Grubb & Ellis, Marcus & Millichap, NAIOP, SIOR and ALM. In those positions, she worked in conjunction with chief executive officers and chief marketing officers to create corporate messaging, cohesive branding standards, strategic marketing plans and thought pieces. Brown is a frequent speaker at industry events and an editing adjunct professor for an online course. She has a master’s degree in mass communications from San Jose State University.

  • ◦Sale/Acquisition
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