Los Angeles – July 25, 2016 – CBRE Group, Inc. announced the sale of a 20-year, ground lease property currently occupied by discount grocer ALDI, in California’s San Gabriel Valley, for $6.15 million.
CBRE’s Alex Kozakov and Patrick Wade represented the seller, national real estate development and investment firm Frontier Development LLC, while Treeline Realty represented the buyer, an unidentified private local investor.
The property at 1545 & 1559 N. Hacienda Blvd. is a brand-new ALDI grocery store on a 1.5 acre lot and situated in a primary retail corridor, with neighboring tenants including Ross, McDonald’s and Dollar Tree.
“This is an ideal site for a grocer like ALDI, one of the fastest-growing supermarket chains in the U.S.,” said Kozakov. “It’s in a dense infill, high-barriers-to-entry location with an excellent tenant – making it a secure investment, which is why we received almost a dozen offers and such an aggressive cap rate.”
The ALDI property sits within a 3-mile radius of more than 225,000 people with an average household income of more than $72,000. ALDI serves more than 25 million shoppers a month and is expected to open 650 new stores by 2018. The grocer is one of the leading global discount supermarket chains with almost 10,000 stores in 18 countries and nearly 1,400 stores in the United States.
“Discount grocers and stores have been doing very well in high-density areas such as LA County,” said Wade. “An increasing number of investors have been drawn to this type of property in strategic locations as it presents a good and stable yield alternative.”
ALDI Nord is owner of the Trader Joe’s chain, while ALDI Süd operates as “ALDI”. Though already in the central and eastern portions of the U.S., Aldi Süd announced in early 2015 its plans to expand into the Southern California market.
La Puente is located 12 miles North of Anaheim, and 20 miles east of downtown Los Angeles in the San Gabriel Valley. The city is predominantly residential, serving as home to more than 40,000 residents and is known as a working-class town with the majority of its population being Hispanic.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2015 revenue). The Company has more than 70,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 400 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website at www.cbre.com.
