MORENO VALLEY, CA—TownGate Center retail property here has been sold to San Diego’s Brixton Capital for $41,971,000, representing a 6.9% cap rate.

CBRE SVP Philip Voorhees and the firm’s National Retail Investment Group – West (NRIG-West) team handled the sale. TownGate Center, a 285,775-square-foot community shopping center by a high-performing TJ Maxx/Home Goods and Ross Dress for Less, along with Regency Theatres, BevMo!, ULTA, Dollar Tree, Planet Fitness and restaurants such as Chipotle.

CBRE’s retail investment experts Voorhees, Megan Read, Jimmy Slusher, John Read and Brad Rable, represented the seller, a partnership between Chicago-based private equity firm, Walton Street and Dallas-based, Fritz Duda Company. The all-cash buyer, also represented by Voorhees and the NRIG-West team, was San Diego, CA- based Brixton Capital. CBRE leasing professionals Walter Pagel and Barclay Harty were the leasing agents on TownGate Center at the time of the sale.

TownGate Center is a 28.5-acre site that sits adjacent to the Moreno Valley Mall and features excellent visibility in both directions along Highway 60 in the heart of Moreno Valley’s primary retail trade area.

According to Voorhees, the CBRE team’s marketing system distributed more than 460 offering memoranda to investors and brokers, and through the team’s “managed bid” offer process, generated more than 9 offers to purchase the property. The purchase price mirrored CBRE’s pricing guidance to the ownership.

“The quality of the buyer pool, the level of activity and the competitive bidding we experienced on the TownGate Center transaction indicates renewed institutional investor interest in retail investments in the Inland Empire,” said Voorhees.

“TownGate Center provides an excellent balance of income stability from new 10-year leases with national and regional credit tenants, a below replacement cost purchase opportunity, some very low in-place rents, and the ability to significantly increase income over a 5-10-year hold period as the economy continues to recover. The Inland Empire is roaring back. The affordability index, the cost of housing per square foot relative to average household incomes, is by far the best available in Southern California,” Voorhees added.