Long Beach single-tenant retail building trades to private investor
JLL Capital Markets closed the $4.25M sale of a retail building triple-net-leased to The Coffee Bean & Tea Leaf
NEWPORT BEACH, Calif, March 15, 2021 – JLL Capital Markets announced today that it has closed the $4.25 million sale of a newly constructed, 1,839-square-foot retail building at 5865 E. Spring St. that is triple net leased to The Coffee Bean & Tea Leaf in Long Beach, California.
JLL marketed the property on behalf of the seller, Pacific West Property Group, Inc., a Southern California-based merchant developer specializing in value-add and ground-up retail developments in Southern California. A private investor acquired the asset in an all-cash transaction with a 20-day escrow as part of a 1031 exchange.
Globally recognized Los Angeles-based The Coffee Bean & Tea Leaf is a coffee chain with more than 1,200 locations in 30 countries that occupies 5865 E. Spring St. on a long-term triple net lease with renewal options. Constructed in 2020, the retail building features a drive-thru, which is part of the tenant’s expansion strategy, along with a large outdoor patio that can accommodate up to 90 customers. Additionally, the property includes four parking stalls leased by EVgo, the largest public fast charging operator for electric vehicles in the nation.
Situated on 0.5 acres just 20 miles south of downtown Los Angeles, the property is at the high-traffic, signalized intersection of Spring Street and Los Coyotes Diagonal, which has combined traffic counts of 44,000 vehicles per day. The building is also along a major retail corridor and within a densely populated and affluent Long Beach location that includes more than 171,000 residents with in a three-mile radius earning an average annual household income of more than $122,000.
The JLL Capital Markets Investment Sales Advisory team representing the seller was led by Director Adam Friedlander (Ca. Lic. #1806555). Alan Wong of DAAG Developments acted as the buyer’s consultant.
“1031 exchange buyers remain as one of the most active capital sources in the marketplace,” Friedlander said. “Private capital is willing to pay aggressive cap rates for long-term corporate leases, especially for quick service restaurants with a drive-thru.
“The demand for passive, long-term, net-leased investments or ‘coupon clippers’ and tenants that are deemed as ‘essential retail’ have been attractive to investors trading out of office, multi-housing or shopping centers,” he added. “We don’t see the demand slowing anytime soon for the net-lease product type.”
JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment sales advisory, debt placement, equity placement or a recapitalization. The firm has more than 3,700 Capital Markets specialists worldwide with offices in nearly 50 countries.
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Jones Lang LaSalle Americas, Inc. ("JLL") is a real estate broker licensed with the California Department of Real Estate, license #01223413.
JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. JLL shapes the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, amazing spaces and sustainable real estate solutions for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $16.6 billion, operations in over 80 countries and a global workforce of more than 91,000 as of December 31, 2020. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.