Commercial Real Estate Transaction Alert
Progressive Real Estate Partners, the leading Inland Empire retail real estate brokerage firm, announced today the sale of Foothill Village, a 24,895 square-foot unanchored multi-tenant retail center located at 14755 Foothill Boulevard in Fontana, California. The property sold for $5.3M in an all-cash 1031 exchange transaction. The 100% occupied neighborhood center is in a densely populated area with more than 140,700 residents within 3-miles earning an average household income of $89,700.
Progressive Real Estate Partners’ Vice President of Investment Sales Greg Bedell, CCIM and Senior Retail Specialist Albert Lopez exclusively marketed the property and represented the seller, a private Los Angeles-based investor. Bedell also represented the buyer, a private Los Angeles-based investor. In addition to helping with the sale of the center, Lopez was also instrumental in creating significant value for the ownership thru the lease-up of approximately 5,000 square-feet. Additionally he successfully renegotiated multiple leases that were month to month at below market rents to long term leases at current market rates.
Built in 2006, Foothill Village features high quality modern architecture and is home to a robust mix of 13 internet-resistant food and service retailers. The center benefits from its excellent location along Foothill Boulevard, a primary retail corridor, with visibility to over 36,600 vehicles per day. Furthermore there is a thriving daytime marketplace of 32,000+ employees in a 3-mile radius driven by the 7.3M square-feet of industrial distribution centers across from the property many of which are occupied by national brands such as Target, UPS and Mercedes Benz. The property is also adjacent to the Heritage Village master planned community with 3,300 single family homes.
According to Bedell, “Unanchored retail centers like Foothill Village have been one of the most challenging type of assets to sell during the pandemic. Fortunately most of the Foothill Village tenants weren’t significantly impacted and, for those that were affected, we worked closely with the ownership to address any rent concerns resulting in the property achieving a high level of rent collection compared to the industry average.”
Bedell added, “The property checked all the boxes for the buyer’s 1031 exchange goals including the center’s prime location, 100% occupancy, internet resistant tenant-mix and positive rent collection history. According to CoStar, Foothill Village is one of only three Inland Empire unanchored multi-tenant retail centers over $5M to have traded since the start of the pandemic.”