HESPERIA, CA-The recent sale of the 53,259-square-foot Topaz Marketplace set a record for price per square foot for Inland Empire multi-tenant retail property sales over $10 million so far this year. According to president Rich Walter and senior managing director Nick Coo of Irvine, CA-based Faris Lee Investments, who represented both the buyer and the seller, the grocery-anchored shopping center is fully occupied and offers upside to the buyer in several respects.
“In addition to rental income increasing over the next few years, the property is situated on three individual parcels, providing a potential future exit strategy of breaking up the center and maximizing value,” Walter said. Also, the property includes a 2,900-square-foot, fully improved, developable land parcel that may be ground-leased or developed in the future.
As reported previously on GlobeSt.com, TNP Strategic Retail Trust of Irvine acquired the center from Culver City, CA-based Hesperia Main Street LLC for $13.5 million. Built in 2008 and situated on just over six acres, the property is located at 14101, 14135, and 14177 Main St. Topaz Marketplace is occupied by a tenant roster including Fresh & Easy, DaVita Dialysis, Wood Grill Buffet, American General, Metro PCS, and others.
In marketing the center, Walter says, Faris Lee focused on the value-added opportunities the center provides. Faris Lee Capital Markets Group also packaged the offering with multiple finance options in order to simplify the financing process.
Coo points out that Topaz Marketplace offered a diverse tenant mix across grocery, retail, medical, and educational uses, which provided investment security through exposure to independent business sectors. “Communicating the asset’s differentiating factors relative to the local trade area and the overall investment marketplace was crucial to our marketing process which included answers about the health of the distressed area, future retail development, and a strategic outlook on Fresh & Easy’s future in the Inland Empire,” Coo said.
As GlobeSt.com’s earlier report said, Stephen Corea, Thompson National Properties SVP of acquisitions, noted that Topaz tenants have staggered lease expirations that range from 2018 to 2028.
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