By Ariela Moraru
Hanley Investment Group Real Estate Advisors negotiated the sale of Michaels Plaza, a 62,952-square-foot, newly remodeled regional shopping center in Riverside, Calif. An affiliate of San Francisco-based The Krausz Cos. Inc. sold the property for around $22.2 million. The property was 98 percent occupied at the time of the sale.
Located at 10303-10357 Magnolia Ave. on 5 acres, the property was built in 1987 and underwent a multimillion-dollar renovation in 2016 after Krausz acquired it in 2013. Michaels anchors the asset, while around 94 percent of the tenants are national or regional companies, including David’s Bridal, Lamps Plus, Armed Forces, The Flame Broiler, GameStop and Miracle Ear.
Hanley President Ed Hanley and executive vice presidents Bill Asher and Kevin Fryman represented the seller. The property’s selling points were its location in a high-density retail trade area with over 2.5 million square feet of retail space within a one-mile radius. The asset is across the street from the 1.2 million square-foot Galleria at Tyler Mall, home to the only Nordstrom in the Inland Empire. Another draw was that around 83 percent of the tenants have been located at the shopping center since at least 2003 and that all existing tenants extended their leases for the last five years.
Jefferson Kim of jKim Group Inc. worked on behalf of the 1031 exchange buyer, a private investor from Fullerton, Calif.
Inland Empire retail market
Hanley noted that eight Inland Empire shopping centers priced at more than $20 million have traded hands in the Inland Empire in the last 12 months and Hanley Investment Group negotiated three of the transactions.
“Overall, the retail investment market in the Inland Empire has continued to improve and be a viable alternative option to the competitive Los Angeles and Orange County markets,” said Hanley in prepared remarks. “We have seen more transactions in the last 12 months in Riverside and San Bernardino County and, although we have seen more inventory, it still hasn’t outweighed buyer demand.”
Image courtesy of Hanley Investment Group