A single-tenant retail property in Whittier that is currently occupied by a Cardenas Markets store has sold for $14.8 million.

Cardenas Markets is an Ontario-based Latin American grocery chain. 

Hanley Investment Group Real Estate Advisors’ Carlos Lopez and Lee Csenar represented the seller, a private investor based in Hawaii. 

CBRE Group Inc.’s Gary Stache, Doug Mack and Chris Martin represented the individual who bought the property.

“Within several weeks of formally marketing the property, we had procured five qualified offers and selected a 1031 buyer who opened escrow noncontingent at approximately 99.4% of the list price and closed escrow in three days to achieve the seller’s goal of a year-end closing for tax benefits and estate planning,” Lopez said in a statement.

In a 1031 exchange, sellers defer capital gains taxes by reinvesting money from the sale of one building into another, or vice versa in a reverse exchange. 

Cardenas Markets opened in Whittier in July at 11750 Whittier Blvd. The 34,642-square-foot store sits on 2.6 acres. The site was formerly occupied by a Stater Bros. Markets that closed in 2019.

“This is an irreplaceable location in Los Angeles County with a long-term lease and corporate guarantee from a highly desirable daily needs t
enant that offers a secure and stable investment,” Lopez said in a statement. 

Retail properties with grocery stores have done well during the pandemic. 

Charing Cross Partners recently purchased South Bay Village in Torrance from Regency Centers Corp. for $39.8 million. The 108,000-square-foot shopping center, located at 19330 Hawthorne Blvd., is anchored by a grocery store.

In December, the California Marketplace in Koreatown sold for $57.5 million to Jake Sharp Capital. The 800,000-square-foot center at 450 S. Western Ave is anchored by Gaju Market, a Korean grocery store.

Also last year, Exposition Marketplace, a grocery-anchored center near USC, sold for $29.4 million. The property is anchored by Expo Super Market.

“Single-tenant grocery investments have remained one of the most sought-after as an essential business and daily needs tenant, which is recession-proof and internet-resistant,” Lopez said in a statement. “This continued demand represents a flight to safety and security and includes Hispanic markets like Cardenas and El Super, organic markets like Whole Foods and Sprouts, and discount-oriented markets like Aldi, Grocery Outlet, and Smart & Final. We expect the demand for these tenants to continue throughout 2021.”

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