CORONA, CA-Cornerstone Development of Laguna Niguel has acquired the 110,865-sf Sierra del Oro Town Center in a transaction that hinged on the buyer coming up with an $8-million equity investment and assuming an existing loan, Faris Lee Investments reports. Rich Walter of Faris Lee says that finding a buyer willing to meet both of those requirements represented an unusual combination of challenges in marketing the property, which was built in 1991 and is 95% occupied. Cornerstone bought the center for more than $18.2 million from Horowitz Management Inc., a private investment group also based in Laguna Niguel, in a 1031 exchange. Walter and Donald MacLellan of Faris Lee Investments represented the seller, with David Lee and Dennis Vaccaro of Faris Lee representing the buyer. Walter explains that the large equity requirement was necessary because there was a fixed rate loan on the property that could not be paid off, so the buyer had to assume the loan and put down the rest in capital in accordance with the existing loan terms.The Sierra del Oro center is at 2621-2721 Green River Rd. and is occupied by tenants including Ralphs supermarket, Bank of America, Round Table Pizza and Jack in the Box. The center is situated on an 11-acre site off the Riverside (91) Freeway. Another important aspect of the closing was the assumption of the debt in time to meet the deadline for the buyer's 1031 exchange, notes Walter, who points out that, "the complexities of debt assumption" are becoming increasingly important in a growing number of investment sales because so many of today's buyers are in 1031 exchanges and must get financing arranged within a tight time frame.Walter describes Sierra del Oro as "one of the most dominant neighborhood shopping centers in Corona," with a population within a five-mile radius of the center of approximately 143,500 sf, with an average household income of $74,800. Also within a five-mile radius of the shopping center, the population is expected to grow 15% by 2008.
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