The fully leased property comprises three stand-alone tenants, each with long-term leases: New Seasons Market, Walgreen's and Chevron. The average annual lease rate for New Seasons and Walgreen's is $23.71, according to a recent Pan Pacific Financial statement.
Barclay's principal Ruben Poplawski tells GlobeSt.com he liked the long-term, high-credit tenants, the location and the interest rate on the acquisition loan. "Can you replace that property for the value we bought it?" says Poplawski. "I think it would be very difficult."
"It's a great location with some of the highest demographics in the state," says Katy Durant of Trammell Crow, who represented the seller with partner Gary Gilbert. Steve Daneman of Daneman Realty represented Barclay's.
Durant tells GlobeSt.com the grocery-anchored retail REIT has been unloading properties that do not include in-line shops adjacent the grocery stores, as it is typically the smaller tenants that provide the opportunity to hike rents and, therefore, increase returns for investors.
Poplawski says he and his investors look for a steady return, not an increasing return. Raleigh Hills Plaza will provide a 9% annual cash-on-cash return, he says.
Barclay's owns about 1.7 million sf of retail real estate in California, Oregon and Washington. In Oregon, Barclay's now owns about 300,000 sf in four properties. In neighboring Washington, it owns 800,000 sf.
Poplawski says his firm is in the process of purchasing two more properties, a 180,000-sf center in Washington and a 60,000-sf property in California. The Washington closing is scheduled for the end of February.
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