Alan Krueger of Marcus & Millichap's Ontario office listed the property and represented the seller, with he and Charles Shillington, also of the Marcus & Millichap Ontario office, representing the buyer. The 100%-leased Pavilion Shopping Center is a 96,964-sf property at 2054 W. Redlands Blvd., just off the Interstate 10 Freeway.
Shillington tells GlobeSt.com that the buyer of the four-building center was in a 1031 Exchange and that the seller had owned it for about five years. He and Krueger describe the property as a dominant center in its market area. It is anchored by Wal-Mart, which was not part of the sale, and Food 4 Less. Additional tenants include Payless Shoe Source, Sally Beauty Supply, Fashion Joy, GT Phone Mart and Fantastic Sams.
The Pavilion is in the heart of an Inland Empire (Riverside and San Bernardino counties) retail market that Marcus & Millichap has described as expanding and exhibiting "solid fundamentals." The two-county region's growing population supports an increasing number of retailers as consumer spending levels climb each year due to the 45,000 new residents being added annually, according to a recent report from Marcus & Millichap.
Overall, the retail vacancy rate in the two-county region has dropped by about half a percentage point in the last year, dipping to about 6.5% in the latest survey. Prices paid for retail properties continue to rise in the Inland Empire, the report says, thanks to a buyer demand that is driven by investors' confidence that the region's population will continue to grow as new residents turn to Inland Empire housing that is less expensive than housing in Los Angeles and Orange counties.
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