This is the buyer's first investment in Riverside County, DanVittone of Voit Commercial Brokerage's Irvine office He says the Orange County-based investment grouplooked to Riverside County because falling cap rates are promptinga number of investors to "look in outlying areas where industrialproperty is more affordable." The buyer acquired this business parkat a cap rate of approximately 8.75%. Prices are rising and caprates are being squeezed in Orange County, he says, due to anabundance of 10-31 exchange buyers and first time real estateinvestors who are seeking alternative investments to the stockmarket.

Vittone and Alan Pekarcik of Voit represented the buyer, whileCharley Black and Mike Strode of Lee & Associates, along withKelly Kayl of CB Richard Ellis, represented the seller.

Vittone tells that Temecula properties areattracting investors because the area is a growth center inRiverside County, both in terms of population and commercialdevelopment that are driving demand for new office and industrialspace. The commercial developments include the new Pechanga Casinoand hotel which opened earlier this year, about a 10-minute drivefrom the business park. With 522 rooms, the hotel is the largest toopen in California thus far this year.

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