526 W Monterey Ave, Pomona | Net-Leased Industrial Investment

The deal

Passive industrial income
with the land underneath it.

Two freestanding industrial buildings on three legal parcels in Pomona, fully leased to Parts Authority — a national auto parts distributor with roughly 325 locations, backed by Kohlberg & Company.

Ownership reports more than $300,000 put into the property in 2022 — new HVAC, new copper plumbing, ADA upgrades, new windows and lighting — and a 62-month lease signed in May 2025. Figures reported by ownership and not verified by broker. Rent steps up 2.50% every year, and the tenant holds two five-year options that carry the lease to July 2040 if exercised.

Based on the lease document, the lease appears to operate on a net basis: the landlord pays the tax bill and carries the insurance policy, then recovers both from the tenant monthly as operating expenses, subject to annual reconciliation. The item that appears not to pass through is the tax increase caused by the sale itself, discussed below. Summaries here are for convenience and are qualified by the executed lease, which controls.

The rent basis is modest at $1.07/SF NNN, the land-to-building ratio is better than 2:1, and there are 31 parking stalls plus a fenced ±7,200 SF lot. If the tenant ever leaves, you own small-bay LA County industrial on a corner — the deepest owner-user buyer pool in Southern California.

Asking price	$2,988,000
Cap rate	5.80%
Price / SF building	$220.71
Current annual base rent	$173,178
Monthly base rent	$14,431.51
Building area	±13,538 SF
Land area	±28,114 SF · ±0.65 AC
Office	±1,538 SF
Tenant	Parts Authority, LLC
Lease type	NNN · taxes & insurance reimbursed
Expiration	July 31, 2030
Escalations	2.50% annually
Zoning	POCIND · City of Pomona
Parcels	8340-034-021 / -004 / -009

Why it trades

Seven reasons to own it.

Tenant

A national distributor, not a local operator

Company press releases and trade reports indicate roughly 325 locations following the August 2026 acquisition of NPW Companies, and majority ownership by Kohlberg & Company since 2020. Not verified by broker or seller; buyer to conduct its own credit review.

Income

NOI that grows every year, hands off

2.50% annual escalations run through the primary term and both option periods. No CPI negotiation, no flat years, no argument at renewal about what the bump should be.

Duration

Ten more years of tenant control

±3.9 years remain on the primary term, plus two five-year options at 95% of fair market rent with a floor at the prior year's rent. Exercised in full, the lease runs to July 2040.

Condition

The capital has already been spent

Ownership reports over $300,000 of 2022 refurbishment — new HVAC, new copper plumbing, ADA-compliant restrooms and access, new low-E windows, upgraded lighting, under City of Pomona permit C-048291-2022. Scope and cost not verified; buyer to confirm with the City.

Basis

Rent low enough to be renewed

$1.07/SF NNN sits at the low end for comparable small-bay San Gabriel Valley product. Low rent is what makes a tenant stay, and it leaves room to mark to market at option.

Structure

Expenses pass through to the tenant

Taxes, insurance and site upkeep are recovered monthly as operating expenses and reconciled each year, with a tenant audit right. Capital over $25,000 amortizes over fifteen years and is recovered too. Utilities are separately metered.

Real estate

Three parcels, two buildings, one corner

±7,538 SF and ±6,000 SF buildings plus a fenced ±7,200 SF yard, assembled across three APNs. Demise it, sell a parcel, or occupy it yourself — the optionality is in the dirt.

Underwriting

Asking $2,988,000.
Run it at your number.

Offered at $2,988,000 — a 5.80% cap on in-place NOI of $173,178. Move the slider to test any other basis. Base rent is net — taxes, insurance and site costs are reimbursed by the tenant — so the only deduction is the tax increase created by the sale itself, which under Section 10(b) of the lease does not pass through.

Yield calculator

Base rent is net of reimbursed expenses

Purchase price

$

Current assessed value — per public records, verify

$

Base rent · Year 2 net of reimbursed expenses$173,178

Less non-reimbursable reassessment §10(b)($10,781)

Adjusted NOI$162,397

Cap on in-place NOI

5.80%

Adjusted cap — §10(b)

5.24%

Price / SF building

$221

Year 5 cap on in-place

6.24%

Illustrative only — not an asking price and not an offer to sell. Taxes, insurance and site costs are reimbursed by the tenant; the single deduction shown is the tax on the spread between the current assessed value and your purchase price, which §10(b) of the lease does not pass through. Assumes a 1.20% effective rate — verify with the LA County Assessor. A reserve for roof and structure is not included.

Lease year	Period	Monthly	Annual
Year 1	08/25 – 07/26	$14,079.52	$168,954
Year 2Now	08/26 – 07/27	$14,431.51	$173,178
Year 3	08/27 – 07/28	$14,792.30	$177,508
Year 4	08/28 – 07/29	$15,162.10	$181,945
Year 5	08/29 – 07/30	$15,541.16	$186,494
Option 1	08/30 – 07/35	95% of market, floor at prior rent, 2.5%/yr
Option 2	08/35 – 07/40	95% of market, floor at prior rent, 2.5%/yr
Primary term total		$888,079

Who pays what

Real property taxes	LL pays · tenant reimburses
Property insurance	LL carries · tenant reimburses
Parking, landscape, site upkeep	LL performs · tenant reimburses
Utilities	Tenant · separately metered
Interior maintenance	Tenant
HVAC service contract	Tenant
Capital over $25,000	Amortized ≥15 yrs · reimbursed
Roof & structure	Landlord

The expense that appears not to pass through

Section 10(b) of the lease addresses tax increases attributable to a transfer of ownership. California reassesses at the sale price, so the incremental tax this sale creates would stay with the buyer for the balance of the term, while ordinary Proposition 13 growth of up to 2.00% a year would remain reimbursable. Buyer should review the provision and reach its own conclusions.

Public records indicate a 2025 assessed value of $2,865,257 across the three parcels against an asking price of $2,988,000, which would leave roughly $122,743 subject to reassessment — on the order of $1,683 a year, or about $29,000 of value at a 5.80% cap. Each additional $100,000 of reassessment would cost roughly $1,371 a year. These figures have not been verified by broker or seller; buyer should confirm assessed values, the applicable rate and any direct assessments with the LA County Assessor and its title company.

The tenant

Parts Authority

Founded in 1972 and headquartered in New Hyde Park, New York, Parts Authority is one of the country's largest distributors of automotive and truck replacement parts, tools and equipment. It sells into the "do-it-for-me" channel — independent repair shops, jobbers, national fleet accounts and e-commerce — from a hub-and-spoke network built for same-day, multiple-times-daily delivery.

In August 2026 the company acquired Miami-based NPW Companies, adding 46 locations, entering five new states and bringing the platform to roughly 325 locations. Days earlier it opened a 450,000 SF distribution hub in Olive Branch, Mississippi. More than a dozen acquisitions have closed in recent years. Kohlberg & Company has held a majority stake since 2020, with The Jordan Company retaining a position and management invested alongside them.

Why this tenancy tends to stay put

The branch is infrastructure, not a storefront. Each location is picked for its delivery radius and freeway access. The building exists to hit a promised delivery window to installers inside that radius — move the building and you miss the window.
The tenant's capital is in the building. Under Exhibit D of this lease, Parts Authority installed its own racking, shelving and wrought-iron window security. Moving that build-out, plus the inventory inside it, is expensive and disruptive.
Ten years of options is a statement of intent. A tenant planning a short stay doesn't negotiate two five-year extensions with a 95%-of-market formula.
Growth by acquisition rewards retention. The expansion model absorbs and keeps established distribution points — NPW added 46 of them in a single transaction.

1972

Founded

±325

Locations

3M+

Part numbers

450k SF

Newest hub

Tenant information compiled from company materials and public reports, 2026. Not independently verified. Buyer to complete its own credit review.

The real estate

Two buildings. Three parcels.
One hard corner.

Total building area	±13,538 SF
Main building · 526 W Monterey	±7,538 SF
Second building · 253 N Rebecca	±6,000 SF
Office area	±1,538 SF
Land area	±28,114 SF
Land-to-building ratio	±2.08 : 1
Clear height	±10 ft
Loading	4 ground-level roll-up doors

Power	400 amps / 240 volts
Parking	31 stalls · ±2.29 / 1,000 SF
Construction	Concrete block / masonry
Year built	1961 main · 1969 Rebecca
Roof	Flat, wood truss · spray-coated 2020 (reported)
Fire sprinklers	Non-sprinklered
HVAC / plumbing	Replaced 2022 · new copper
ADA	Compliant · permit C-048291-2022
Frontage	W Monterey Ave & N Rebecca St

Building areas, land areas, dimensions, systems and permit data above are approximate, drawn from public records, prior marketing materials and the 2022 approved plans, and have not been verified by broker or seller. Buyer must independently verify all measurements, capacities, zoning and code compliance.

APN	Address	Land	Improvement
8340-034-021	526 W Monterey Ave	±13,714 SF	Main building ±7,538 SF + office
8340-034-004	253 N Rebecca St	±7,200 SF	Second building ±6,000 SF
8340-034-009	Vacant lot, no address	±7,200 SF	Secured parking / yard
Three parcels		±28,114 SF	±13,538 SF improvements

Photography

See it.

Interior photography taken prior to the current tenancy and shown for reference only. Condition, systems and improvements to be verified by buyer's own inspection.

Location

Where the San Gabriel Valley
becomes the Inland Empire.

The property sits in Pomona's established industrial district just west of downtown, on the corner of W Monterey Avenue and N Rebecca Street. Pomona holds the eastern edge of Los Angeles County, where the San Gabriel Valley meets the largest industrial and logistics concentration in North America.

For a parts distributor the geography is the whole point. A delivery van reaches the 10, 71, 60 and 57 Freeways within minutes, putting Pomona, Claremont, Montclair, Ontario, Chino, Diamond Bar, Walnut, La Verne and San Dimas inside one short loop — exactly the radius the branch model is built to serve.

Pomona is home to roughly 150,000 residents, Cal Poly Pomona, Western University of Health Sciences and the Fairplex. Industrial land in the submarket is effectively built out; new small-bay supply is functionally nonexistent.

SR-71 Corona Expressway	±1 mi
I-10 San Bernardino Freeway	±2 mi
SR-60 Pomona Freeway	±2 mi
SR-57 Orange Freeway	±4 mi
Ontario International Airport	±12 mi
Downtown Los Angeles	±30 mi
Ports of LA / Long Beach	±45 mi