Search for yield drives interest in income-producing retail properties
Los Angeles – September 13, 2016 – CBRE Group, Inc. announced the sale of the Montclair Shoppes in Southern California for $15.5 million to a local investor, signaling the increasing demand for income-producing real estate in population growth areas.The property, located at 9303 - 9407 Central Avenue in Montclair, sold to an unidentified buyer out of West Los Angeles for $820 a square foot and at a 5.5 percent capitalization rate. The seller, BOSC Realty Advisors out of Bloomfield Hills, Michigan, was represented by Ken McLeod and Tim Kuruzar, CBRE’s Retail Investment Sales Team based in Beverly Hills.
The new shopping center is approximately 18,889 square feet and was completed this year. Its 12 tenants include Sleep Number, AT&T, Tommy’s Hamburgers and other food chains, plus additional service providers. The property is highly visible from Central Avenue and is located next to or across from the Montclair Plaza, Costco, Target, and Stater Bros., providing a strong retail base. Traffic counts on the 10 Freeway at Central Avenue are estimated at 253,000 vehicles per day, and on Central Avenue at the 10 Freeway at 37,174 vehicles per day.
“Central Avenue is a premier retail destination in San Bernardino County,” says Waad J. Nadhir, President of BOSC Retail Advisors. “The Montclair Shoppes are located within an area where the demand for daily-use retailers continues to grow.”
Adds McLeod “Retail centers that house service providers that cannot be replicated online are very popular with investors. Properties such as Montclair Shoppes that feature well-known chains along with service and daily needs tenants are very attractive as a great and safe yield alternative.”
The city of Montclair is located 30 miles east of downtown Los Angeles and within 30 miles of the employment centers in Orange County. Nestled at the Los Angeles County, Orange County and Inland Empire crossing, the Montclair Plaza is among the region’s attractive shopping destinations. Montclair is also in proximity to several higher education institutions, including the Claremont Colleges and the University of La Verne.
“This is a highly visible and dynamic growth area with lots of retail demand from a multitude of facilities and institutions in the area as well as from an expanding residential community,” said Kuruzar. “For that reason, we received a number of inquiries on this deal, both from domestic and national investors.”
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2015 revenue). The Company has more than 70,000 employees (excluding affiliates), and serves real estate investors and occupiers through more than 400 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
