New York-based Fata Organization LLC recently purchased a newly developed, 2.5k sf single-tenant, NNN-leased retail property that is occupied by Starbucks Coffee with a drive-thru. The property, located at 17142 Slover Ave in Fontana, traded for $3.17 mil, or $1,268/sf.
The asset is part of Palm Court Center, a 630k sf power center anchored by Super Target, Ross, TJ Maxx and 24 Hour Fitness. The center also includes Kaiser Permanente, which employs more than 500 people and draws hundreds of daily visitors. Starbucks is located on an outparcel to the center, and enjoys great visibility and direct access from Slover Avenue.
Christopher DePierro and Jeff Conover with Faris Lee Investments represented the seller, Southern California-based Puente Hills Power Center LLC. The buyer was repped by Matt Brooks, also with Faris Lee Investments. The property sold at a cap rate of 4.1%, which represents the lowest cap rate for a freestanding Starbucks sold in Riverside/San Bernardino Counties with a price point over $2.75 mil.
“Newly constructed single-tenant properties in prime locations are opportunities investors seek out, however, they are difficult to find especially in Southern California,” noted DePierro. The all-cash buyer was a 1031 exchange investor.