SAN BERNARDINO, CA-The buyer of the 93,129-square-foot West SidePlaza at 1554-1594 W. Base Line St. has acquired the shoppingcenter for $10.95 million at a 9.25% cap rate based on projected2011 NOI, closing in five days in an all-cash transaction. BrokerOrbell Ovaness, who represented the Long Beach-based buyer alongwith his associate Artin Sepanian, tells GlobeSt.com that the newowner plans to develop 13,500 square feet of additional space atthe center that is fully entitled.

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The property, which was 95% occupied at the close of the sale,was sold by Southern California-based Westside Plaza LLC, which wasrepresented by Enrique Wong, CEO of National Equity Advisors Inc.in Encino. Wong reports that the shopping center, built in 1995 andconsisting of four buildings, attracted several strong offers andletters of intent from various buyers, local and national.

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West Side Plaza is anchored by the El Super supermarket as wellas national tenants including CVS, the US Postal Service, BurgerKing and Little Caesars. Ovaness points out that the El Superdelivers consistently strong sales, more than $750 per square foot,and that the center is one of the few in San Bernardino to havemaintained high occupancy despite the downturn.

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Ovaness says that the buyer was one of “about four differentrunner-ups” and that his client won the deal because the buyer“came in with a five-day close all-cash and a non-contingentoffer.” He says the 9.25% cap rate reflects the location in SanBernardino, which “took a big hit on the retail side, withvacancies above 10%.”

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Consequently, lenders have been reluctant to finance propertiesin San Bernardino, Ovaness adds. He says that with the strength ofthe tenants and the high occupancy of the West Side Plaza, however,the new owner is confident of being able to refinance the propertyafter developing the additional 13,500 square feet.

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