Rancho Cucamonga, CA – October 30, 2023 – Progressive Real Estate Partners, the leading Inland Empire retail real estate brokerage, announced the $7,450,000 sale of a 21,918 square-foot 100% occupied shop building at 10582 Foothill Boulevard in Rancho Cucamonga, California. The 9-tenant shop building sold at a 6.11% cap rate in an all cash 1031 exchange transaction.
The building is ideally situated between Target and Hobby Lobby and is part of the 645K SF Terra Vista Town Center. Centrally located at the busy signalized intersection of Foothill Boulevard and Haven Avenue the center has excellent visibility and unobstructed frontage with exposure to an average of 67,300 cars per day.
Progressive Real Estate Partners’ Senior VP of Investment Sales Greg Bedell, CCIM and Senior VP of Retail Leasing & Sales Paul Su, exclusively marketed the property and represented the seller, a private Michigan based investor. Raymond Ho with GE Property represented the buyer, a private San Gabriel Valley-based investor.
Nine e-commerce resistant service oriented tenants including multiple beauty service providers, a jeweler, escape room and a children’s indoor playground occupy the shop building. All leases are NNN with staggered lease expirations, embedded annual rent increases and below market rents providing the buyer a diverse income stream with upside potential by increasing rents to market rates over time.
The regionally prominent Terra Vista Town Center is 99% leased and in addition to Target and Hobby Lobby is also home to Ross, Old Navy, Michaels, Home Goods, Esporta Fitness, Big 5 Sporting Goods, Five Below and over 40 other shops, services and dining spots. Originally developed by Lewis Retail Centers, the popular outdoor center features modern architecture and a pedestrian friendly layout.
According to CoStar Rancho Cucamonga enjoys a low retail vacancy rate of only 4.16% well below the overall Inland Empire rate of 5.85% and below the LA County rate of 5.3%. Terra Vista Town Center also boasts impressive demographics with over 234,000 people residing within a 10-minute drive and an average household income of nearly $111,000.
Paul Su shared, “The buyer was particularly attracted to the location of these shops nestled between Target and Hobby Lobby. Additionally, the high-income trade area, diverse tenant mix and very low retail vacancy rate at Terra Vista Town Center and Rancho Cucamonga as a whole made the asset very desirable”.
Greg Bedell added, “With higher construction costs and rising interest rates continuing to impede the development of new retail space, the supply of existing shop space in the Inland Empire remains constrained. As a result, owners of quality retail centers are benefitting from rising rental rates and stronger tenants. We expect this trend to continue.”
About Progressive Real Estate Partners
Progressive Real Estate Partners (PREP) is a boutique commercial brokerage firm headquartered in Rancho Cucamonga, California. Founded in 2008, the firm specializes in the leasing and sale of retail properties in Southern California’s Inland Empire. The firm is also the exclusive Inland Empire representative of the Retail Brokers Network (RBN). Since the firm’s inception Progressive has completed over 1,200 lease and sales transactions valued at more than $1.8B in over 35 cities throughout the region. Progressive uses the latest marketing and brokerage techniques to help retailers and property owners achieve their real estate goals.