Progressive Real Estate Partners Brokers $2.4M Sale of Value-Add Retail Strip Center in West Covina, California

Rancho Cucamonga, CAJune 24, 2024Progressive Real Estate Partners, a leading Inland Empire and San Gabriel Valley retail brokerage, arranged the $2,437,500 all cash sale of a multi-tenant retail strip center at 532-540 North Azusa Avenue in West Covina, California. The 7,760 square foot center is 100% occupied and is prominently situated on Azusa Avenue which is the area’s primary north/south commercial corridor with visibility to over 53,000 cars per day.

Progressive Real Estate Partners’ Senior VP Greg Bedell, CCIM and VP of Retail Leasing & Sales Roxanne “Roxy” Klein represented the seller, a private San Bernardino County investor, in the transaction. Before listing the property for sale Klein brokered a lease with a martial arts studio bringing the property to full occupancy and adding significant value.  The buyer is a local West Covina based investor who also owns and manages several other Southern California retail properties and is officed in West Covina near the property.

The center is home to five service-oriented tenants ranging in size from 1,300 to 2,000 square feet including a nail salon, hair salon, martial arts school, massage studio and Friar Tux. The well-maintained property features 135+ feet of unobstructed frontage and recent updates include a new roof and parking lot improvements.

Within a 3-mile radius there are over 190,000 people with an average household income of $117,131.  Furthermore, according to CoStar, out of 1.5M square feet of retail space along Azusa Avenue between the 10 freeway and Covina Blvd. there are only three vacant shop spaces (1,000 to 2,000 sf) representing less than a 1% vacancy rate.

According to Klein, “Record low shop vacancy rates are helping drive increased rents making retail strip centers, and especially those with a value-add component, a popular investment choice.  With the lease-up of the final space, we negotiated a rental rate that aligned with the current market highlighting the opportunity to adjust the remaining leases to reflect these conditions.”

Bedell added, “This sale represents one of the lowest cap rates year-to-date for a retail strip center in the San Gabriel Valley. Demand remains strong for well-located centers with strong fundamentals, particularly those priced below $5M where there remains a robust pool of all-cash investors who are not as sensitive to higher debt costs.”

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, San Gabriel Valley and Coachella Valley. The firm is also the exclusive Inland Empire representative of the Retail Brokers Network (RBN).  Since the firm’s inception Progressive has completed over 1,650 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.