Hanley Negotiates $29M Inland Empire Retail Sale
- Jul 19, 2017
Hanley Investment Group Real Estate Advisors completed the sale of Sierra Del Oro Towne Centre, a 110,004-square-foot retail center in Corona, Calif. Phillips Edison & Co. purchased the asset for $28.6 million from Cornerstone Development Partners. This is the second Corona retail center to trade in the past three months, following Passco Cos.’s $17 million acquisition of Temescal Village.
Strong historic tenancy
Located on 11 acres at 2621-2721 Green River Road, the Ralphs grocery-anchored shopping center was 94 percent occupied at the time of the sale. The center has strong historical tenants, with 88 percent having occupied space at the property for more than five years and 70 percent for more than 10. Tenants include Dollar Tree, Anytime Fitness, Bank of America, Domino’s Pizza and Children’s Montessori Center.
Ralphs grocery store has operated at this location since the retail center opened in 1991 and signed a five-year lease extension in 2015. Ralphs is the only traditional grocery store within a three-mile radius serving the westerly part of the Corona market, with a customer base of nearly double that of its competitors, according to Hanley Investment Group Executive Vice President Pat Kent. Kent, together with President Ed Hanley and Senior Associate Corey Olson, represented the seller.
The asset is in an area with a $104,000 average household income within a one-mile radius and a population of more than 156,000 people within a five-mile radius. Located at the signalized intersection of Green River Road and Serfas Club Drive, the property has easy access to the 91 Freeway, which has a daily traffic count of 275,000 cars.
“The market for grocery-anchored centers in infill markets remains strong with interest from both the institutional buyers and private 1031 exchange buyers,” said Hanley in prepared remarks. “So far, this year, we have seen an increase in the supply as sellers recognize that this is an ideal time to sell. However, there still remains limited properties available similar to the Sierra Del Oro in both size and quality. Buyers are willing to look in both primary and secondary markets outside of California in search of higher returns and more inventory.”
Inland Empire retail market vacancy stands at 8.4 percent during the second quarter, according to a Colliers report. Currently, there are 893,600 square feet of new retail inventory under construction.
Image courtesy Hanley Investment Group