SAN BERNARDINO, CA-The buyer of the 93,129-square-foot West Side Plaza at 1554-1594 W. Base Line St. has acquired the shopping center for $10.95 million at a 9.25% cap rate based on projected 2011 NOI, closing in five days in an all-cash transaction. Broker Orbell Ovaness, who represented the Long Beach-based buyer along with his associate Artin Sepanian, tells GlobeSt.com that the new owner plans to develop 13,500 square feet of additional space at the center that is fully entitled.
The property, which was 95% occupied at the close of the sale, was sold by Southern California-based Westside Plaza LLC, which was represented by Enrique Wong, CEO of National Equity Advisors Inc. in Encino. Wong reports that the shopping center, built in 1995 and consisting of four buildings, attracted several strong offers and letters of intent from various buyers, local and national.
West Side Plaza is anchored by the El Super supermarket as well as national tenants including CVS, the US Postal Service, Burger King and Little Caesars. Ovaness points out that the El Super delivers consistently strong sales, more than $750 per square foot, and that the center is one of the few in San Bernardino to have maintained high occupancy despite the downturn.
Ovaness says that the buyer was one of “about four different runner-ups” and that his client won the deal because the buyer “came in with a five-day close all-cash and a non-contingent offer.” He says the 9.25% cap rate reflects the location in San Bernardino, which “took a big hit on the retail side, with vacancies above 10%.”
Consequently, lenders have been reluctant to finance properties in San Bernardino, Ovaness adds. He says that with the strength of the tenants and the high occupancy of the West Side Plaza, however, the new owner is confident of being able to refinance the property after developing the additional 13,500 square feet.
Continue Reading for Free
Register and gain access to:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
