IRVINE, CA – Cassidy Turley, a leading commercial real estate services provider in the. U.S., reports the sale of two shopping centers in Moreno Valley with a combined value of $34.85 million.
The centers, Lakeside Terrace and Canyon Springs, sold for the lowest cap rates ever reported for stabilized retail centers over 25,000 square feet in this fast-growing Southern California area. Cassidy Turley Managing Director Dixie Walker, Vice President Charley Simpson and Associate Tom Blake represented ownership in each investment sale.
“These centers signify the movement to quality that has retail investors making aggressive decisions in areas previously not under consideration for low six cap rates,” Mr. Walker said. “Buyers are excited about the synergy being created by new commercial and residential development in the Moreno Valley area and the resulting potential for strong retail consumer demand. Both assets are well-positioned with long-term leases by quality credit tenants. The Moreno Valley area is no longer the Moreno Valley we once knew.”
Lakeside Terrace Shopping Center, a 55,157 square foot center located at 26150 Iris Avenue in Moreno Valley, was purchased through a 1031 Exchange by Spathco from IRA Capital, LLC. The price of $18.05 million, or $315 per square foot, reflects an all-time low cap rate of 6.1% for a center of this size in the area, according to Mr. Walker. Built in 2005, Lakeside Terrace is 94% leased with anchor tenants including CVS, Dollar Tree, McDonald’s and Chase Bank.
“This center is situated on the northeast corner of Iris Avenue and Lasselle Street, the primary retail intersection in the Rancho Belago master-planned community,” Mr. Walker said. “The buyer was attracted to the center for its highly desirable location, secure cash flow and fixed-income growth.”
The Canyon Springs Shopping Center, located at 2704 Canyon Springs Parkway, was sold by Sandstone Properties, Inc., to Springtree Global, LLC, for $16.8 million, or $223 per square foot. “The 6.3% cap-rate also sets a new low watermark for mid-size box retail in the Moreno Valley area,” said Mr. Walker.
Built in 2004, Canyon Springs is 100% leased to five tenants: Smart & Final Extra!, Pier 1 Imports, Michaels, Famous Footwear and Uniform Zone.The center is part of Canyon Springs Marketplace, a 700,000 square foot community retail center that includes Target, Super Wal-Mart, Best Buy, Marshalls and PetSmart, among others.
“Canyon Springs is located in the heart of one of the most prolific retail corridors in the Inland Empire,” said Mr. Walker. “Set at the junction of Interstate 215 and the 60 Freeway, the center is exposed to an average of over 250,000 cars per day. It has incredible drawing power due to the fact that virtually every major national retailer is present in the immediate area.”
This is the first U.S. commercial acquisition for Springtree Global, a private individual investor that owns commercial real estate throughout China. Springtree was represented by Mike Li of Mike Li Realty.
“The long term leases at Canyon Springs by nationally-recognized credit tenants were very appealing to the buyer,” said Mr. Walker.
Both centers required financing to close. Morgan Stanley provided a CMBS loan for the acquisition of Lakeside Terrace. Austin Clay of East/West Bank provided long-term financing for Canyon Springs.
About Cassidy Turley
Cassidy Turley is a leading commercial real estate services provider with more than 4,000 professionals in more than 60 offices nationwide. With headquarters in Washington, DC, the company represents a wide range of clients—from small businesses to Fortune 500 companies, from local non-profits to major institutions. The firm completed transactions valued at $25.8 billion in 2013, manages approximately 400 million square feet on behalf of institutional, corporate and private clients and supports more than 24,000 domestic corporate services locations. Cassidy Turley serves owners, investors and tenants with a full spectrum of integrated commercial real estate services—including capital markets, tenant representation, corporate services, project leasing, property management, project and development services, and research and consulting. Cassidy Turley enhances its global service delivery outside North America through a partnership with GVA, giving clients access to commercial real estate professionals in 65 international markets. Please visit www.cassidyturley.com for more information about Cassidy Turley.
