Real estate advisory Hanley Investment Group has orchestrated the sale of a 6,402-square-foot multi-tenant retail pad building in Modesto, California.
The property is shadow-anchored by a Save Mart grocery store and was sold for US $4.11 million.
Executive Vice Presidents Jeff Lefko and Bill Asher of Hanley Investment Group represented the seller, Covenant Real Estate Group in Henderson, Nevada, while the buyer was a private investor from Elk Grove, California.
According to Lefko, the team secured an all-cash buyer from the area even before officially marketing the property for sale.
The negotiation process resulted in a swift 15-day due diligence period, ensuring commitment from the buyer and providing confidence to the seller, ultimately eliminating the need for formal marketing.
The three-tenant retail pad building was constructed in 2018 and is situated on 0.61 acres at 3601 Pelandale Avenue in Modesto.
The tenants include Pacific Dental Services (trading as Modesto Smiles Dentistry), Mountain Mike's Pizza, and West Coast Sourdough Deli, which is set to open soon.
Pacific Dental Services (PDS), a prominent dental and medical support organization, operates over 900 supported offices in 25 states.
It provides comprehensive administrative and business operations support, skilled staff, and ongoing training and education to healthcare providers.
PDS has been recognized on the Inc. 5000 list of the fastest-growing private companies in America for the past 13 consecutive years.
Mountain Mike's Pizza, founded in 1978, boasts a network of more than 250 restaurants across California, Oregon, Nevada, Utah, Arizona, and Idaho.
In addition to offering carryout and in-house delivery, Mountain Mike's provides a family-friendly dine-in experience, making it a popular choice among guests.
West Coast Sourdough, rooted in the belief that a sandwich's quality depends on the bread, utilizes the finest sourdough bread, hand-rolled by artisan bakers in the Bay Area.
The company emphasizes the use of premium meats, sourced locally, and currently operates 46 locations in California.
Located in California's Central Valley, Modesto serves as the county seat and is the largest city in Stanislaus County, with an estimated population of 220,968 and covering 44.80 square miles.
It ranks as the 18th largest city in California and the 104th most populous city in the United States.
Earlier, Lefko and Asher facilitated the sale of a new construction, two-tenant Chipotle Mexican Grill Drive-Thru pad with Roku Sushi at the Freedom Point Plaza in Roseville, California, with TopGolf and Living Spaces as anchor tenants.
According to Lefko, multi-tenant retail pads leased to national and regional tenants within well-located anchored shopping centers continue to attract consistent demand from buyers in the current market.
He points out that these types of investments offer higher returns compared to the single-tenant net-leased sector, providing investors with a secure and diversified income stream.
He is also optimistic about the second half of 2023, anticipating steady activity in multi-tenant retail pad sales.
