Two Moreno Valley Retail Buys Total Over $10M

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RENTV.com

We’ve got two recent retail investment deals totaling over $10 mil from Riverside County to report. In the larger transaction, GBF Investment LLC, out of Pomona, acquired a 39.3k sf, two-tenant retail building in Moreno Valley for $7.1 mil ($181/sf).

Located on 3.67 acres at 25050 Alessandro Blvd in a CVS/pharmacy-anchored shopping center, the property is 100% occupied by a newly-opened 24.4k sf Smart & Final Extra! and a 14.9k sf Dollar Tree. The property featured an initial ten-year, NNN lease with Dollar Tree that had nine years remaining. Smart & Final opened for business shortly before the property closed escrow with a new 15-year NNN lease.

Hanley Investment Group President Ed Hanley and Executive Vice President Bill Asher represented the seller, Brad Becker, a principal at Becker Properties based in Encinitas. The all-cash buyer was repped by Bob Bonanomi of CBRE in Universal City. The property sold at a cap rate of 5.75 percent.

Also, in Moreno Valley, Pasadena-based TC Enterprise Group LLC paid $3.3 mil for a two-tenant, 6.4k sf ($507/sf) pad building occupied by a 3.9k sf Coast Dental office and a 2.5k sf TitleMax. Located on .30 acres at 12252 Perris Blvd, the freestanding 6,440-square-foot pad building is situated within a shopping center that includes CVS/pharmacy, dd’s Discounts, Bank of America and Dollar Tree at the hard corner signalized intersection of Perris Blvd and Hemlock Ave.

The seller, also represented by Hanley and Asher, was MV-Perris LLC, a subsidiary of FHC Inc, based in Newport Beach. The buyer was repped by Charles Wong of CCRE Capital Commercial Inc of Irvine.

“We negotiated a seven-day due diligence period and successfully closed escrow 20 days after execution of the Purchase and Sale Agreement with an all-cash buyer,” said Asher. “It provided the seller with a firm commitment from the buyer in a short period of time, while giving the buyer the certainty that they had secured a property for their 1031 exchange early in their identification process.”

Asher notes it was a record price per square foot sale for a multi-tenant strip center in Moreno Valley. The property is situated in a primary corridor with neighboring retailers that include Walgreens, McDonald’ s, Food 4 Less and O’ Reilly Auto Parts.