This is the buyer's first investment in Riverside County, Dan Vittone of Voit Commercial Brokerage's Irvine office tells GlobeSt.com. He says the Orange County-based investment group looked to Riverside County because falling cap rates are prompting a number of investors to "look in outlying areas where industrial property is more affordable." The buyer acquired this business park at a cap rate of approximately 8.75%. Prices are rising and cap rates are being squeezed in Orange County, he says, due to an abundance of 10-31 exchange buyers and first time real estate investors who are seeking alternative investments to the stock market.

Vittone and Alan Pekarcik of Voit represented the buyer, while Charley Black and Mike Strode of Lee & Associates, along with Kelly Kayl of CB Richard Ellis, represented the seller.

Vittone tells GlobeSt.com that Temecula properties are attracting investors because the area is a growth center in Riverside County, both in terms of population and commercial development that are driving demand for new office and industrial space. The commercial developments include the new Pechanga Casino and hotel which opened earlier this year, about a 10-minute drive from the business park. With 522 rooms, the hotel is the largest to open in California thus far this year.

The seller had owned the Foothill Business Park since 2000. The park was 30% occupied when WLA Investments bought it. WLA then completed tenant improvements in the suites and increased occupancy to its current level. The five-building property is of concrete tilt-up construction and includes two two-story buildings that are traditional office space, two that are R&D, and one that is a single-story incubator building.