Hanley Investment Group Arranges $6.9 Million Sale of Two Single-Tenant Retail Properties in Southern California

Why It Matters

The transaction highlights strong demand for long‑term, triple‑net retail assets in a high‑growth Southern California market, offering stable cash flow and tax‑advantaged investment structures.

Key Takeaways

• Two single‑tenant pads sold for $6.9 million.
• Quick Quack lease: 20 years, 12% hikes each five years.
• Popeyes lease: 20 years, 10% rent hikes, construction upcoming.
• 17 years left on Quick Quack lease with renewal options.
• Hanley represented seller; buyer is California 1031‑exchange investor.

Pulse Analysis

Single‑tenant, triple‑net (NNN) properties have become a cornerstone of institutional real‑estate portfolios, especially in regions like Southern California where consumer traffic and demographic growth support stable rent streams. Investors value the predictability of absolute NNN leases, which shift operating costs to tenants and lock in periodic rent escalations. In markets with limited supply of well‑located parcels, such assets command premium valuations, as reflected in the $6.9 million price for the Murrieta pads.

The two Murrieta parcels illustrate how diversified tenant mixes can enhance asset resilience. Quick Quack, a car‑wash operator, secures a 20‑year lease with 12% rent increases every five years and retains 17 years of term plus renewal options, providing a long‑run income cushion. Popeyes, a nationally recognized quick‑service restaurant, brings a comparable 20‑year NNN lease with 10% escalations, and its imminent construction signals near‑term cash flow commencement. Both leases are absolute, meaning the landlord bears no expense risk, a structure highly prized by 1031‑exchange investors seeking deferral of capital gains while acquiring income‑producing real estate.

For the buyer—a Central Valley 1031‑exchange investor—the acquisition offers immediate diversification into the Southern California retail corridor and a clear path to tax‑efficient wealth accumulation. Hanley’s role as advisor underscores the firm’s expertise in matching niche investors with high‑quality, income‑stable assets. As demand for NNN retail continues to outpace supply, similar transactions are likely to proliferate, reinforcing the sector’s appeal amid broader market volatility.