Bill Barnett and Doug Hogan, both with Burnham in San Diego, say the buyer plans to hold the retail space as an investment. Barnett and Hogan represented the buyer, while the Reza Investment Group of Sperry Van Ness represented the seller.
Mountain Meadows Plaza is anchored by a Vons Supermaket. The center was built in 1996, with some additional portions developed in 2001. It is of single-story, wood-frame construction and was fully occupied at sale time. The seller had owned the property for approximately three years.
The buyer, based in San Diego, was in a 1031 Exchange with the proceeds from the sale of an apartment building. The transaction worked out to about an 8.5% cap rate, according to Reza Etedali of the Reza Investment Group, who tells GlobeSt.com that the deal was typical of many these days in which sellers of apartment buildings are buying shopping centers, office buildings and other types of investment real estate to obtain higher cap rates than can usually be obtained in an apartment acquisition.
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