Duong Retail Closes Inland Empire Record Sale
- Aug 05, 2017
Duong Retail Group closed escrow on two Inland Empire retail properties for a total of $9.9 million. A San Bernardino County-based private investor acquired the University Heights Shopping Center in Riverside, Calif., at a record-low cap rate of 5 percent.
The first Black Bear Diner to hit the market in the Inland Empire sold at a cap rate of 5.18 percent, one of the lowest cap rates for a Black Bear Diner.
Located at 3355 Iowa Ave., just off Interstate 215, the University Heights Shopping Center is one mile from the University of California, Riverside. The asset is situated in a signalized corner location with 39,000 cars per day. The retail center traded for the first time in more than 30 years. Out of around 20 tenants, 53 percent of leases were month-to-month or expired in one year. Ron Duong and Roy Dilekoglu in Marcus & Millichap’s Newport Beach office represented both the buyer and the seller in the transaction.
Duong and Peter Deltondo represented the buyer and seller of the Black Bear Diner located at 12325 Mountain Ave. in Chino, Calif. The property is situated by CA 60, with more than 220,000 vehicles per day. The asset has around 80 feet of frontage on Mountain Avenue, with a daily traffic of 30,200 cars.
Inland Empire retail market
The Inland Empire retail market recorded the highest vacancy rate in the Greater Los Angeles area at 8.4 percent in the second quarter and the lowest asking rents at $1.44 per square foot NNN, according to a Colliers report.
“Despite some concerns in the media on the direction of retail, the appetite for quality retail properties remains strong. We implemented an aggressive marketing campaign that leverages Marcus & Millichap’s platform to generate multiple offers to achieve record pricing for our clients,” said Duong in prepared remarks. Duong also recently closed the sale of a new single-tenant absolute net-lease Rite Aid property in Menifee, Calif., for $9 million.
Images courtesy of Duong Retail Group