RANCHO CUCAMONGA, CA-GlobeSt.com has exclusively learned that Foothill Crossing, a 312,307-square-foot regional power center located at 12181-12357 Foothill Blvd. in Rancho Cucamonga, CA, has changed hands. The purchase price was $54 million.
Jeff Conover of Faris Lee Investments represented the seller and the developer of the property, Foothill Crossing LLC from Los Angeles. Dennis Vaccaro of Faris Lee Investments represented the 1031 Exchange buyer, Tivoli Square Apartments LP.
“We targeted both private and intuitional investors in our marketing strategy for Foothill Crossing,” Conover explains. “Additionally, the intrinsic value of the center and its cash-on-cash return were key factors that garnered a strong amount of interest and multiple offers.”
As GlobeSt.com previously reported, the center went on sale in late 2012 for around $60-million. According to Conover, Tivoli Square Apartments LP, an investment group coming out of an apartment complex sale in a 1031 Exchange, was selected because it was “a logical fit as it already owns a number of nearby retail properties.”
Built in 2004 and 2006, the property sits on just over 31 acres and is 90% occupied by a strong national credit tenant lineup including Sears Grand, Total Wine & More, and Office Depot.
Vaccaro tells GlobeSt.com that “overall, the Southern California retail center sales market is seeing a significant lack of supply.” Retail development, he says, has been minimal and “existing owners for the most part feel that they have made it through the hard times and are comfortable with their assets.”
On the buy side, he continues, “Southern California continues to be one of the most desirable marketplaces both for domestic as well as the increasingly active foreign buyers.”
“The buyer was attracted to Foothill Crossing because the retail center has remained successful despite the recent recession, proving its ability to attract and retain tenants. To that point, a vast majority of tenants are renewing their leases as they roll,” Vaccaro explains. “The property also offered the buyer one of the best retail locations in the Inland Empire as it is situated at the on/off ramp of Foothill Boulevard and Interstate 15, and is directly across from the 1.5-million-square-foot Victoria Gardens lifestyle mall.”
Crossing also benefits from unobstructed retail frontage of nearly a half-mile along Interstate 15, and approximately 1,600 feet of frontage along Foothill Boulevard, says Faris Lee. The average household income is in excess of $89,000 within a five-mile radius.
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
