A Newport Beach-based physician in a 1031 exchange paid $5.35 mil for a single-tenant, 17.9k sf ($299/sf) in Riverside. The freestanding property is fully occupied by Grocery Outlet Bargain Market.
With construction completed in late 2018, the property is located on 1.95 acres at 3490 Madison Street. The absolute triple-net leased asset has a new 15-year lease in place and is part of a larger shopping center known as Madison Plaza.
The property is situated at the signalized intersection of Madison Street and Garden Street and has direct on/off ramp access to the adjacent Riverside Freeway/State Highway 91 connecting much of the Inland Empire to the coastal regions of Orange County and Los Angeles. Madison Plaza is anchored by 24 Hour Fitness and also includes Starbucks, Denny’s, and Circle K/Exxon Mobile gas station along with other pad spaces that are completing construction.
The asset is also near Home Depot, Ross Dress for Less, Dollar Tree, among other national name brand retailers. There is a dense population of more than 284,000 within a five-mile radius of the property.
Patrick Luther and Matthew Mousavi with SRS Real Estate Partners’ National Net Lease Group represented the seller, a Newport Beach-based private developer and sourced the buyer, who has other holdings in the Inland Empire and was represented by Marcus & Millichap. Additionally, Garrett Colburn and Townsend Cropsey, also with SRS, were responsible for securing the long-term lease with Grocery Outlet on behalf of the ownership.
“New construction assets with a successful grocery tenant are in high demand from investors and this offering was no exception,” said Luther.