Two-Tenant Grocery-Anchored Retail Center

Highlights:

• Two-Tenant Grocery-Anchored Retail Center Food 4 Less and Ross Dress For Less is a ±83,760 square feet retail center situated on over six (6) acres. The synergistic tenant mix has solidified the center as being an essential service and daily needs shopping destination for the community.
• Below Market Rents With base rents running under $10 per square foot per year, the existing rents are well below market.
• High Performing Stores Food4Less boasts reported store sales over $520/SF (2.0% rent vs sales ratio) and Ross has estimated annual sales of $9million (Source: Placer.ai)
• Minimal Landlord Expenses or Capital Expenditure Tenants are responsible for paying their full pro-rata share of common area maintenance (CAM) expenses, property taxes, and insurance. Recent parking lot and roof improvements minimize capital expenditures and ensures a stable and predictable income stream.
• Desirable Credit Tenancy The property is leased to strong national tenants including Food 4 Less and Ross Dress For Less, providing stable and predictable income.
• Strong Store Sales and Healthy Rent to Sales Ratio Food 4 Less has experienced three (3) consecutive years of sales growth. With 2024 sales exceeding $30.45 million, Food 4 Less is operating at just a two percent (2.0%) rent vs. sales ratio.
• Excellent Accessibility The center boasts eleven (11) driveway access points with ingress/egress from four (4) streets: F Street, Rialto Avenue, 2nd Street, and E Street.
• Major Retail Corridor with Regional Draw Situated within Downtown San Bernardino’s commercial sector, the property is in close proximity to major retailers such as Marshalls, Starbucks, McDonald’s, dd’s Discounts, and major points of interest including the San Manuel Stadium (Los Angeles Angels Single-A affiliate baseball stadium) and San Bernardino County Courthouse.
• Established Locations with Recent Lease Extensions Both Food 4 Less and Ross Dress For Less have occupied their respective units over fifteen (15) years and and have recently extended their leases.
• Below Replacement Cost Priced at just $141/SF GLA, the property is priced well below the cost to construct similar structures, which provides excellent intrinsic value.
• Dense San Bernardino Submarket Demographics The surrounding area boasts a dense population, with 137,616 residents within a three (3)-mile radius and an average household income exceeding $73,818. The population is projected to grow at an annual rate of 0.05% over the next five (5) years, further enhancing the center’s customer base and long-term viability.
• Across from Major Planned Redevelopment Food 4 Less and Ross Dress For Less is located across the street from the former Carousel Mall, which is owned by the City. The 43-acre site is part of an on-going downtown revitalization project aiming to create a mixed-use district with housing, retail, office, and educational uses.

Description:

CBRE is pleased to offer for sale Food 4 Less and Ross Dress For Less – a ±83,760-square-foot, grocery-anchored, two-tenant shopping center located in San Bernardino. The center consists of an ideal mix of national tenants with strong sales and below market rents. Priced at just $141 per square foot on improvements, the property is priced well below replacement costs. Ross and Food4Less recently extended their leases - demonstrating their commitment to the location.

Both tenants are on triple-net leases, paying their pro-rata share of common area maintenance expenses, property taxes, and insurance. The property is over six (6) acres and runs block-to-block from W 2nd Street to Rialto Avenue, at signalized corners with both F Street and E Street. It is ideally located in Downtown San Bernardino just east of the I-215 Freeway’s 2nd Street on/off ramp, making it a commuter friendly and strategic destination for nearby residents.

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