SAN JACINTO, CA-The sales of four shopping centers here and in other Riverside County cities for an aggregate of $40 million show buyers being drawn to the Inland Empire by underperforming properties with growth potential, according to a Grubb & Ellis brokerage team that has been involved in the four deals. Michelle Schierberl, senior vice president in the Institutional Capital Markets at Grubb & Ellis, explains that, “In every case, the centers we’ve represented the seller on were underperforming with high vacancies that never reached stabilization." Each of these "is well positioned to acquire tenants and for growth once the market returns," Schierberl says. She describes such properties as " an excellent opportunity for the savvy investor with a good understanding of retail.”

Schierberl and associate Donald Ellis represented the sellers in the sales of the 56,473-square-foot San Jacinto Esplanade, the 68,749-square-foot Temecula Creek, the 74,208-square-foot Moreno Beach Plaza Phase II and the 94,574-square-foot Moreno Marketplace.

According to Schierberl, the centers represents “challenging assets with new, quality construction, in good locations" that are becoming available to buyers below replacement cost in limited supply. She notes that all of the centers except Temecula Creek Plaza have entitled land enabling the buyer to increase the size of the retail in the future.

Buyer TNP Acquisitions LLC, an entity of TNP Strategic Retail Trust Inc., acquired the San Jacinto Esplanade from Bank of America for $7.1 million. The property, built in 1997, was 52% leased at the time of sale and is anchored by Fresh & Easy Market, Walgreen’s and Starbucks.

A private investor bought the Temecula Creek Plaza, which was built in 2007 and was $68% leased at the time of closing. The center is anchored by a CVS Pharmacy.

MGP IX REIT LLC, an entity of Merlone Geier Partners, acquired the Moreno Beach Plaza Phase II from Bank of America for $7.6 million. The center was built in 2007 and was 11% occupied at the time of the sale.

TNP Strategic Retail Trust bought the Moreno Marketplace, which is anchored by a Stater Bros. supermarket, from Moreno Marketplace LLC for $12.5 million. Built in 2008, the property was 70% leased at the time of purchase.