RANCHO CUCAMONGA, CA-GlobeSt.com has learned exclusively that Foothill Crossing LLC has put Foothill Crossing, a 312,307-square-foot regional power center here, up for sale for $60 million. The property, located at 12181-12357 Foothill Blvd., is 98% occupied with a strong national-credit tenant lineup anchored by Sears Grand, Total Wine & More and Office Depot.
Jeff Conover, senior managing director of Faris Lee Investments, is marketing the property, which draws from the market area of approximately one million people within a 10-mile radius. “This center offers an investor a high 8.26% cash-on-cash return starting day-one of ownership,” said Conover in a prepared statement. “The intrinsic value of the prime Southern California real estate located off a major freeway on/off ramp in a highly populated retail corridor and pricing below replacement cost of $192 per square foot makes this a secure and stable ownership opportunity that offers passive returns year over year.”
The property sits on slightly more than 31 acres and is located across from Victoria Gardens, a 1.5-million-square-foot lifestyle mall anchored by Macy’s, JCPenney, AMC Theaters and Bass Pro Shops. Foothill Crossings was built in 2004 and 2006 and benefits from unobstructed retail frontage of nearly a half-mile along I-15, and approximately 1,600 feet of frontage along Foothill Blvd.
Faris Lee’s president and COO Rick Chichester said in the statement that the firm will work with the seller to qualify potential buyers to “ensure that they possess the capital resources and experience required for ownership of a retail asset of this caliber.”
Nicholas Coo, senior managing director of Faris Lee Investments, told GlobeSt.com in September that the retail market in Southern California has been stabilizing as the economy recovers, adding that overall, sustainability relative to tenant sales will dictate where rents will go. “There has been a leveling out of sorts in the rental market, which has exposed the overheating of several trade regions that should have never achieved shop-space rental rates at or above the $3-per-month mark.”
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Carrie Rossenfeld
Carrie Rossenfeld is a reporter for the San Diego and Orange County markets on GlobeSt.com and a contributor to Real Estate Forum. She was a trade-magazine and newsletter editor in New York City before moving to Southern California to become a freelance writer and editor for magazines, books and websites. Rossenfeld has written extensively on topics including commercial real estate, running a medical practice, intellectual-property licensing and giftware. She has edited books about profiting from real estate and has ghostwritten a book about starting a home-based business.
