Jones Lang LaSalle Income Property Trust, Inc. has closed on its $60 million acquisition of Rancho Temecula Town Center. Walton Street Capital and Alberta Development Partners LLC sold the retail center at 39540 - 39848 Winchester Rd. in Temecula, CA at nearly $362 per square foot, representing a 5.6% CAP rate.
Built in 2007, the 165,934-square-foot shopping center sits on 20 acres on the "going home side" of Winchester Road, in the South Riverside submarket of Inland Empire. The asset was 93 percent occupied at the time of sale, anchored by a Sprouts Farmers Market, LA Fitness, Rite Aid, and BevMo!, with a mix of inline and pad tenants including Starbucks, Navy Federal Credit Union, Bruegger's Bagels, Juice It Up, Wings-N-Things, and Bright Now Dental.
More than half of the leased space has more than 13 years remaining on term. The four anchors generate 54 percent of the center's revenue, and carry a weighted average lease term of nearly nine years.
"This investment provides increased portfolio diversification with geographic exposure to the west coast and industry exposure to the expanding specialty grocer market," commented Allan Swaringen, president and CEO of Jones Lang LaSalle Income Property Trust. "This is our third grocery anchored-shopping center acquisition in the past nine months, continuing our focus on income producing properties that also have attractive long-term growth potential."
The buyer funded the acquisition in-part with a $28 million new mortgage note payable at 4.02%, interest only for 12 years.
CBRE's National Retail Investment Group (NRIG-West) retail investment team of Philip D. Voorhees, Reg Kobzi, Megan Read, Brad Rable, Matt Burson, John Read, and Jimmy Slusher represented the seller and procured the buyer in a "managed bid" sales process that received 11 offers since January.
"The strong competition to acquire Rancho Temecula Town Center indicates the continued institutional preference to own the highest-performing, highest quality grocery-anchored shopping centers throughout Southern California," said Voorhees.
Please see CoStar COMPS #3049135 for additional information on this transaction.