MORENO VALLEY, CA— “Cap rates in secondary and tertiary marketsthroughout the Inland Empire have declined consistently for retailproduct over the past several years due to increased riskappetites, low interest rates and improving fundamentals.” That isaccording to Irvine, CA-based Dixie Walker, an SVPat Cassidy Turley.

| spoke with Walker in an update to a previous article where the firm sold twoshopping centers here in Moreno Valley with a combined value of$34.85 million.The centers sold for the lowest cap rates everreported for stabilized retail centers over 25,000 square feet inthis fast-growing Southern California area, as GlobeSt.comreported.


Despite improving fundamentals, stabilized transactions rarelybreak under the mid to high 6% cap rate range, even for the mostaggressive buyers, Walker tells This transaction “setthe low benchmark for acceptable yields in this submarket …confirming the continued stretch for yield across the retailspectrum.”
Lakeside Terrace Shopping Center, a55,157-square-foot center located at 26150 Iris Ave. in MorenoValley, which was purchased through a 1031 Exchange bySpathco from IRA Capital LLC. Theprice of $18 millionor $315 per square foot,reflects an all-time low cap rate of 6.1% for a center of this sizein the area, says Walker.


The Canyon Springs Shopping Center, located at2704 Canyon Springs Parkway, was sold by SandstoneProperties Inc., to Springtree GlobalLLC, for $16.8 million or $223 per squarefoot. “The 6.3% cap-rate also sets a new low watermark for mid-sizebox retail tenants for the Moreno Valley area,” he adds.


“Among contributors to improving fundamentals of the area, thatare reflected through investor interest in and sale of thesecenters: Job growth in Moreno Valley leads the Inland Empire;Trammell Crow's new I-215 Logistics Center which will be home toAmazon's new 1.5 million square foot ecommerce facility in MorenoValley—expected to create over 1,000 jobs; and other notabledevelopments within the city that are expected to expand theeconomic base include: Highland Fairview's 1.8-million-square-footSketchers logistics facility and Aldi Foods 800,000-square-footDistribution Center.”

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Natalie Dolce

Natalie Dolce, editor-in-chief of and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel,, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including and Museums New York magazine.