Inland Empire Shopping Center Commands $26M
- Oct 22, 2018
In a $26.3 million deal, the Tarski Group LLC has acquired Heritage Plaza, a 119,000-square-foot retail center in Riverside, Calif., from a joint venture between WPI-Heritage LLC and UAP-Heritage LLC.
CBRE represented both parties in the deal. At the time of sale, the property was operating at 75.6 percent occupancy.
“This is a high-performing grocery-anchored center,” Patrick Wade, CBRE’s senior vice president, told Commercial Property Executive. “Many of the tenants are internet-resistant (grocery, food, coffee) and the majority of the occupants are national or regional tenants, providing good income security.”
Located at 5130-5290 Arlington Ave., the retail center is anchored by Smart & Final and has a tenant roster that includes Starbucks, Del Taco, UPS, Subway, Compass Bank, Yum-Yum Donuts and Verizon Wireless. There’s a vacant junior box space available.
Rise of the Inland Empire
The Inland Empire is seeing strong growth in the retail sector, with CBRE recent research revealing lease rates are expected to rise gradually with continued demand for space. As such, Wade noted the property drew multiple offers.
“Market retail vacancy in the area is hovering just over 5 percent, and this center had almost 25 percent vacancy at time of sale,” Wade said. “The buyer saw it as a good opportunity to purchase at a reasonable in-place income with some potential upside through lease up.”
In July, a private investor paid $24 million for the approximately 100,000-square-foot Thomas Winery Plaza in Rancho Cucamonga, Calif., in an all-cash transaction. In August, Lewis Retail Centers introduced the first phase of Renaissance Marketplace, a 430,000-square-foot retail center in Rialto, Calif., developed specifically for the Millennial generation.
Heritage Plaza features more than 600 feet of frontage along Arlington Avenue, with more than 28,300 vehicles passing each day.
“It is an in-fill Riverside location with established neighborhoods and density,” Wade said. “Retail is doing quite well in this area, buoyed by the strength of the economy and population growth. Also, most national retailers are situated along Arlington, and there is good retail synergy with the neighboring shopping centers.”
According to Wade, the buyer does not own other properties in the immediate area, but they own similar shopping centers throughout Southern California.
Image courtesy of CBRE