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| Dixie Walker |
IRVINE, CA –
Passco Companies , a privately held Calif.-based real estate company
that specializes in the investment, acquisition, development and management of
commercial properties throughout the U.S., has acquired Temescal Village, a 102,976 square-foot neighborhood shopping
center in Corona, California, for $16.95 million.
A retail brokerage team led by Dixie Walker and Charley Simpson of
Cushman & Wakefield’s Irvine office represented the seller, a private
investor, in the transaction.
“Temescal Village is a prime retail
asset with strong value-add potential,” says Todd Siegel, Vice President of Retail Acquisitions for Passco
Companies. “The retail center is located in a densely populated residential community
along the 15 freeway in a market with significant barriers to entry for new
retail supply and incredibly low retail vacancy.”
According to Siegel, at the close
of Q4 2016, the immediate corona retail market had a vacancy rate of 4.4 percent.
“This is one of the lowest vacancy
rates we’ve seen throughout the region,” he explains noting that it is lower
than the vacancy rates of the Inland Empire, Orange and Los Angeles counties.
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| Charley Simpson |
Located at 1181-1199
Magnolia Avenue and built in 1983, Passco plans to modernize the property
through a series of strategic renovations and capital improvements.
Planned
renovations include redesigning the landscaping and updating the façade
throughout the center, as well as adding a variety of social gathering, outdoor
dining, and seating areas throughout the center.
“There continues to be a
major push within the retail industry for centers that cultivate the ultimate
experience for shoppers,” says Siegel. “Shoppers today are demanding
environments where they can gather and socialize with friends and family.
"We
plan to integrate these social components into the center by incorporating more
outdoor seating and gathering spaces for shoppers.”
Siegel adds, “In doing so,
we will be able to increase foot traffic to the center, as well as attract and
retain high-quality retailers. This will drive the long-term value of the asset
and allow us to grow rents as leases roll. Many of the current tenants have
been located at the center since the 1980s and have rents that are well-below
market value, providing a strong opportunity for upside potential.”
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| Todd Siegel |
According to Siegel,
Passco is continuing to identify and source value-add opportunities where they
can significantly enhance the value of a center by integrating a series of
capital improvements and experience-driven amenities.
“As the retail market continues to
evolve, we see tremendous opportunity to reposition and bring value to older,
well-located centers,” says Siegel. “This acquisition is demonstrative of that
fact and will be a strong addition to our existing portfolio.”
Walker, a Managing Director with
Cushman & Wakefield, adds, “Temescal Village is an asset that is truly
positioned for future upside and growth. It has proven stable cash flow, a
diversity of credit worthy tenants, and is located in a market with an
established trade area.
The region experienced a much quicker recovery
post-recession compared to other areas in the Inland Empire, which is
indicative of the future economic health of the region, strongly positioning
the asset to continue to perform well over the long-term.”
The retail center is
currently 93.5 percent leased to a mix of 19 well-known tenants including CVS
Pharmacy, Citibank, Carl’s Jr., Wells Fargo, H&R Block, the UPS Store,
County of Riverside and Metro PCS, among others.
The architectural firm
involved in the renovations for the center is the Architecture Design
Collaborative. Chris Black of
KeyBank Real Estate Capital’s Commercial Mortgage Group arranged acquisition
financing for Passco Companies through Fannie Mae.
For a complete copy of the company’s news release,
please contact:
Lauren Burgos/ Lexi
Astfalk
Brower, Miller & Cole
(949) 955-7940
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