Strong Corporate Tenancy with Long-Term Stability

Highlights:

• Stability and Upside: The property features two high-performing credit tenants and offers potential for future lease-up, with no CCRs restricting future use. The strong property fundamentals attract best-in-class tenancy, ensuring near-term stability and long-term upside.
• Thriving Location: In addition to the long-term presence of Petco and Harbor Freight, the surrounding businesses include Target (top 89% in the nation, according to Placer.ai), Costco (top 80% in the nation, according to Placer.ai), AMC (top 98% in the nation, according to Placer.ai), and Montclair East Shopping Center (which includes the subject parcel), attracting over 2.5 million visits per year and enhancing the property’s appeal.
• Major Area Improvements: CIM Group’s acquisition and renovation of the 1.35 million square foot Montclair Place mall across the street have attracted premier tenants and added amenities like a new food hall, AMC Dine-in Theater (top 98% in the chain (Source: Placer.ai)), and Main Event Entertainment center, further boosting the area’s vibrancy. The project is currently taking place directly across the street from the Subject Property.
• Dense Trade Area: The surrounding 3-mile radius is supported by a dense Southern California demographic, comprising 186,009 residents with an average household income of $109,237, making it ripe for retail success.
• Excellent Access and Traffic: The property spans just under 2.5 acres and offers convenient access from four points in all directions. Its strategic location north of the 10 Freeway On/Off Ramp at Central Avenue sees freeway traffic of 266,704 CPD and 96,670 CPD at the intersection of Moreno Street and Central Avenue.

Description:

Prime Investment Opportunity: Strong Corporate Tenancy with Long-Term Stability

Unmatched Tenancy: The property is fully leased to top-tier retailers, Petco and Harbor Freight, both boasting a robust operating history of approximately 20 years. This property has maintained 100% occupancy for over two decades, underscoring its prime location and desirable positioning along the corridor.

High Performing Tenants: Both tenants exhibit exceptional store performance, with Petco ranking in the top 92% and Harbor Freight in the top 57% nationwide (Source: Placer.ai).Their corporate real estate teams are committed to expanding their footprint and serving more customers, ensuring continued growth and success.

Excellent Intrinsic Value: Offered at just $198/SF, the Property is well below replacement costs, even after recent upgrades to the façade, roof, and HVAC systems. Furthermore, both tenants are currently leased at below-market rates of $12–$14/SF/Year, compared to the submarket’s average of $19/SF. This presents a compelling opportunity to gradually increase rents, unlocking significant income potential over time.

Recent Upgrades: Petco invested over $750,000 to upgrade the store format to their modern store format, Vetco, in 2022. The costly buildout shows the strength of the Tenant at this location and also will drive more traffic with the veterinary/grooming services now being offered at the location.

Property Enhancements: Current ownership has recently invested in a brand-new 20 year silicone roof replacement and provided capital for new HVAC systems, both to be completed in May of 2025. These upgrades come with transferable warranties, ensuring long-term reliability and reduced maintenance costs. Additionally, the parking lot received a full re-striping in October of 2024, enhancing the curb appeal and mitigating future CapEx.

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