TEMECULA, CA—Rancho Temecula Town Center, a 165,486-square-foot community shopping center here, has been sold for $60 million.

CBRE senior vice president Philip Voorhees says that he and the firm's National Retail Investment Group – West completed the sale this week.

The property is anchored by a high-performing Sprouts Farmers Market along with LA Fitness, Rite Aid, BevMo! and a complementary mix of pad and shop tenants. The sale price represented a 5.6% cap rate. The center was approximately 93% occupied at the time of sale.

CBRE's retail investment experts Voorhees, Reg Kobzi, Megan Read, Brad Rable, Matt Burson, John Read and Jimmy Slusher, represented the seller, a partnership between an affiliate of Walton Street Capital, LLC, a Chicago-based private equity firm, and Colorado-based, Alberta Development Partners. The buyer, also represented by Voorhees and the NRIG-West team, was LaSalle Investment Management, Inc., acting as an advisor to Jones Lang LaSalle Income Property Trust, a non-listed, daily valued perpetual-life REIT.  CBRE leasing professional Barclay Harty was the leasing agent on Rancho Temecula Town Center at the time of the sale.

“The strong competition to acquire Rancho Temecula Town Center indicates the continued institutional preference to own the highest-performing, highest quality grocery-anchored shopping centers throughout Southern California,” said Voorhees.

In addition to handling the investment sale, Bruce Francis in CBRE's Phoenix office and Shaun Moothart in CBRE's Newport Beach office, both with CBRE's Debt & Structured Finance team, arranged the 12-year, interest-only, fixed-rate loan of $28 million. 

“Rancho Temecula Town Center is an excellent project with an impressive Sprouts Market and a top-tier tenant roster. Lucas Kimmell, Erick Paulson and the entire LaSalle Investment Management team were terrific to work with,” said CBRE's Francis.

Built in 2007, Rancho Temecula Town Center is a wholly-owned, 20-acre site along the “going home side” of Winchester Road, which is one of the trade area's primary arterials.

According to Voorhees, the CBRE team's marketing system distributed more than 691 offering memoranda to investors and brokers, and through the team's "managed bid" offer process, generated 11 offers to purchase the property. The purchase price mirrored CBRE's pricing guidance to the ownership.

With this closing, CBRE's NRIG-West team has closed 87 transactions since the start of 2012 for a total consideration of $1.9 billion. In total, the NRIG-West team has listed and sold more than $7.8 billion in retail transactions.