Retail Center in Riverside County Trades for Over $500/SF

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RENTV.com

Oak Grove Crossing, a 22.6k sf Riverside County shopping center shadow-anchored by Target, traded hands in a recent $11.6 mil ($513/sf) transaction. The property, located at 18283 and 18285 Collier Ave in the city of Lake Elsinore, was purchased by a family trust out of the city of Orange. 

The property, which was built in 2006, is located on 2.36 acres and was 100% occupied at the time of the sale by 81 percent national and regional credit tenants. These include McDonald’s with a drive-thru, Starbucks, GameStop, GNC, H&R Block, Pacific Dental, Papa John’s Pizza, Subway, Supercuts, Verizon and Yogurtland. The McDonald’s is a stand-alone on a pad with a long-term ground lease. 

Kevin Fryman with Hanley Investment Group represented the seller, a private investment partnership based in Murrieta. The buyer was represented by Jeff Lefko and Bill Asher, also with Hanley. 

Fryman reports that the property enjoys long-term historical occupancy. “Approximately 77% of the tenants have been located at the center since it was built in 2006,” Fryman noted. “Since 2012, all of the shop tenants have signed a new lease or extended their lease.” 

Target is the second largest discount retailer in the United States (ranked #38 on Fortune 500), according to Asher. “This location includes Target’s grocery concept as well as a CVS/pharmacy inside the store, driving ‘daily needs’ traffic to the center,” Asher commented. “Additional traffic draws include Bank of America and Tarbell Realtors, which are located in the shopping center, but were not a part of the sale.” 

Lefko noted that Oak Grove Crossing is the dominant retail trade area with limited shop tenant competition. Nearby power centers anchored by 99¢ Only, ALDI, Costco, Home Depot, Kirkland’s, LA Fitness, Lowe’s, Petco, PetSmart and Staples. There are no shop tenants in anchored centers in the immediate area on the west side of I-15.