Dollar Tree & New Century Market
Retail | 6.00% CAP | 29,120 SqFt
Marketing description
SRS Capital Markets is pleased to offer the opportunity to acquire the fee simple interest (land & building ownership) in a two-tenant, anchored, big box retail center located in Ontario, CA (Riverside MSA). The offering sits on two large parcels spanning across 3.77 acres and totals 29,120 rentable square feet across two big box suites. The Property is 100% occupied by two tenants, New Century Market and Dollar Tree (S&P: BBB), providing stable in-place cash flow. The asset features a weighted average lease term of approximately 14.2 years, minimizing near-term rollover risk and providing long-term income stability for investors. New Century Market occupies approximately 14,120 square feet and operates under a long-term NNN lease with scheduled 10% rental increases every five years throughout the primary term. Dollar Tree ranks in the top 93rd percentile of locations nationwide (Placer.ai) and recently executed a new 10-year lease extension. The Property is being offered at approximately $170/SF, representing pricing that is well below estimated replacement cost for comparable retail product in the Ontario trade area and broader Southern California market.
The offering includes a parcelized, 1.02-acre land pad available for future development or leasing, providing a compelling value-add opportunity through future monetization or a potential pad sale that could help lower an investor’s overall basis (see site plan for details). In addition, the center has experienced continued investment and development activity, highlighted by the addition of a new Dutch Bros Coffee location and a planned two-story self-storage facility, both of which further reinforce the strength and long-term growth trajectory of the immediate trade area.
The asset is strategically located at the signalized, hard corner intersection of Euclid Avenue and East Riverside Drive which supports more than 58,000 vehicles per day. Furthermore, the site benefits from nearby access to Highway 60 (228,000 VPD), Central Ave (22,900 VPD), and Mountain Ave (28,800 VPD), making this an ideal, centralized location with easy commutes. In addition, the site is directly adjacent to Home Depot that supports nearly 1 million visitors per year and ranks in the top 74th percentile of locations nationwide, significantly increasing consumer traffic to the immediate subject trade area (per Placer.ai). Moreover, the subject property is less than 2 miles southeast of Chino Town Square, a 531,000+ square foot power center anchored by Target, Burlington, Ross dd’s Discounts, Planet Fitness, and more. Other nearby national/credit tenants include Albertsons, Smart & Final, Superior Grocers, Five Below, Harbor Freight, 24 Hour Fitness, and more. The asset is ideally located between multiple large-scale apartment complexes such as Legacy Ontario (346 units – currently under development), Veranda Ontario (142 units), Artisan Master Community (235 units), and more, providing a direct residential consumer base from which to draw. The dense, 5-mile subject trade area is supported by more than 353,000 residents and 122,000 daytime employees. Residents within a 1-mile radius boast extremely affluent average household incomes of more than $121,000.
Investment highlights
- 100% Occupied | Investment Grade Anchor (S&P:BBB) | Big Box
- 1.02 Acre Land Pad Included | Dutch Bros & Planned Self-Storage
- Below Replacement Cost | WALT - 14.2 Years | SoCal Real Estate
- Strong National/Credit Tenants | Dense Retail Corridor
- Signalized, Hard Corner Intersection | Centralized Location
- Strong Demographics in 5-Mile Trade Area | Affluent Incomes
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