Sunday, May 9, 2021
Commercial Real Estate Transactions

Colliers Arranges $26.26 Million Sale of Grocery-Anchored Center in Temecula

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COMMERCIAL REAL ESTATE TRANSACTION ALERT

Decrease in Retail Availability Drives Demand from Investors and Keeps Cap Rates Stabilized ​

Colliers International announced the $26.26 million sale of Meadows Village, an upscale 80,553-square-foot shopping center located in affluent Temecula Valley. The grocery and drugstore anchored property attracts solid e-commerce proof tenants including Baron’s Market, CVS Pharmacy, EOS Fitness, Starbucks, The UPS Store, Wells Fargo, and Subway. The asset is centrally located at 31771-31963 Rancho California Road in an established residential community, with an average household income of approximately $120,000 living within a three-mile radius.

Colliers’s Executive Vice President, El Warner, along with agents, Caitlin Zirpolo, Charley Simpson, Jordan Gomez, and Peter Orth closed the transaction amid what has been a volatile year for many retailers. While transaction velocity was down nearly 75% in 2020, Warner believes cap rates have remained relatively strong because of the significant shortage of available retail product on the market.

“Meadows Village went to market at the height of the pandemic,” says Warner. “Despite the negative perception surrounding retail, current buyer demand for daily needs shopping centers is able to absorb the limited supply of available assets on the market today thereby holding cap rates at pre-pandemic levels. Most retail landlords are focused on tenant related issues and not currently considering taking assets to market despite the demand.”

Meadows Village went out to market in August and sold in just under 5 months illustrating the continued demand in retail today. These details lend themselves to underlying trends the retail industry is seeing now.

Colliers Capital Markets Retail transacts over $3 billion of retail investment sales per year. Based in Southern California, the National Retail Investment team led by Warner is Colliers top Retail Capital Markets team. Comprising 15 specialists, they advise large and small clients on how to successfully optimize retail assets across the country.

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Inland Empire Business Journal
The Inland Empire Business Journal (IEBJ) is the official business news publication of Southern California’s Inland Empire region - covering San Bernardino & Riverside Counties.