Fontana - 9885 Sierra

Investment Overview

Newmark Pacific Retail Capital Markets is pleased to present the opportunity to acquire a fee simple interest in 88.7% occupied 9885 Sierra Avenue. Located in the growing San Bernardino County bedroom community of Fontana, California and built to institutional standards in 2021, the center boats a national and credit lineup comprised of Dave’s Hot Chicken, Starbucks, AT&T, Fred Loya Insurance, La Carniceria Fontana, and Fontana Pizza Co. The site benefits from an excellent location just off the Sierra Avenue exit on Interstate 10 (220,000 CPD), an enormous east west thoroughfare connecting Los Angeles and Jacksonville, Florida. A Kaiser Permanente Hospital is located across the street with 420 beds serving 400,000 Kaiser Permanente patients in the area. The hospital drives a robust daytime population for the food uses at 9885 Sierra.

Investment Highlights

• Tenant Roster: The subject property is comprised of six regional or national tenants and one 1,100 square foot vacancy. Dave’s Hot Chicken is a leader in the hot chicken space expanding from one store in East Hollywood to over 100 stores in four countries today. Coffee juggernaut Starbucks occupies 1,300 square feet at the property. Global telecom icon AT&T operates a wireless store in 1.500 square feet at the property. Fred Loya Insurance, the leader in the car insurance industry servicing Hispanic communities in 12 states has over 800 offices. Local favorites La Carniceria Fontana and Fontana Pizza Company round out the credit and internet resistant lineup.
• Location: Located just off the Sierra exit of the 10 Freeway (220,000 CPD), 9885 Sierra Avenue benefits from in ideal location on the hard corner of Sierra Avenue (33,000 CPD) and Marygold Avenue. Kaier Permanente Fontana Medical Center is located across Marygold to the south and drives a robust daytime population for the food uses at 9885 Sierra. The hospital has 420 beds and serves over 400,000 members of Kaiser Permanente’s health care plans in the area. Hispanic grocer El Super is located across the street to the West adding to the bustling retail corridor.
• New Construction: The property was built in 2021 to institutional standards allowing for very little to zero near-term capital expenses. The opportunity to acquire new construction is rare in today’s building climate of exorbitant construction costs. This provides investor a reliable and predictable investment for years to come.
• Lease Up of Vacancy: The one 1,100 square foot vacancy at the property comprises 11.3 % of the leasable area allowing a new buyer to grow the Net Operating income over 3.6% on a compound basis through the analysis period. Growth through lease-up is the preferred value add method in today’s environment.
• Ideal 1031 Exchange: Delivered free and clear of debt permitting an investor to purchase for cash or place new five or ten year financing at historic interest rate levels.