A private partnership based in Orange County, California, has sold the majority share of RC Plaza, a neighborhood shopping center at the signalized intersection of Archibald Avenue and East Foothill Boulevard in San Bernardino County’s Rancho Cucamonga, California, for $9,795,000 to a private investor from Los Angeles.
Built in 1984, RC Plaza comprises nine retail buildings totaling 37,239 square feet and is situated on 3.01 acres. It also contains an additional multi-tenant 15,717-square-foot building that is separately owned and was not a part of the sale.
Hanley Investment Group Real Estate Advisors EVP Bill Asher and president Ed Hanley, along with VP Joe Miller of Voit Real Estate Services in Anaheim, California, represented the seller. The buyer, was represented by Eric Treibatch of Ophir Management Services Inc. of Encino, California.
National tenants at RC Plaza include Starbucks (with a drive-thru) and Pizza Hut. RC Plaza shopping center “We generated a tremendous amount of interest due to the shopping center’s value-add investment attributes,” says Asher. “The asset featured an overall low price per square foot, below-market rents, as well as a stand-alone Starbucks building positioned on a separate parcel, offering the future flexibility to sell off separately as a net-leased asset.”
Asher adds, “We utilized a long-term broker relationship to successfully secure a buyer that clearly understood the many unique characteristics of the property, at a price that met the seller’s expectations.”
Approximately 71 percent of the existing tenancy has occupied space at the property since at least 2012, Asher says. “Starbucks constructed a drive-thru in 2006 and signed a new 10-year lease extension in 2015, which demonstrated their long-term commitment to the location.”
Hanley adds, “Due to some challenging characteristics of the property, we strategically structured the buyer’s due-diligence review ahead of finalizing a formal contract and opening escrow to best retain maximum value for the seller and facilitate a seamless and smooth transaction for both parties.”
Hanley notes that shopping centers that provide future upside potential in today’s market are becoming more challenging for investors to find in Southern California, “which is why RC Plaza was highly sought-after during our marketing process and will continue to be the type of retail asset in high demand for investors.”