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.

GlobeSt.com 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 GlobeSt.com. 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.