Capital Fuels Inland, OC Retail Deals

Westrust obtained its financing from Pacific Coast Capital Partners of El Segundo through a Westrust affiliate called W Hemet LLC to finance the acquisition of nearly 7.6 acres and the development of the shopping center, called Hemet Village, which will be a three-building retail project on Florida Avenue just east of Sanderson Avenue. The development plans include one building totaling 77,182 sf and two, multi-tenant pad buildings totaling 10,800 sf. Letters of Intent have already been signed for anchor tenants including a 33,000-sf Marshall's, a 20,082-sf PetSmart and a 20,000-sf Office Depot. The three leases currently under negotiation represent 83% of the project's gross leasable area. The developer expects to begin construction in July 2005 and to complete the project in February 2006, according to Hal Pohl, VP of Pacific Coast Capital Partners. In another Inland Empire deal, Sperry Van Ness reports that San Jose-based Desert Art Properties LLC bought the three-building, 13,326-sf Desert Square center for $4.1 million from Palm Desert-based Desert Square RM. Desert Square, at 70223-70225 Highway 111 in Rancho Mirage, was built in 2003 and was 73% leased at the time of the sale, according to Michael Kassinger and Cameron Hall of Sperry Van Ness in Palm Springs, who represented both the buyer and the seller. According to Kassinger, the buyer was attracted to the property by its prime location and excellent visibility along Highway 111. Additionally, the property has upside potential through increased occupancy.

In a Huntington Beach deal in Orange County, the CB Richard Ellis Private Client Group in Newport Beach reports that a local investor fulfilling a 1031 requirement bought a 16,400-sf Kia dealership at 19232 Beach Blvd. from Cardinal Development for $3.7 million. The property, which was built in 1970 was 100% occupied at the time of sale. Gary Stache and Pat Scruggs of the Private Client Group represented both the buyer and the seller.

In one of the most prominent examples lately of the high prices commanded by Orange County retail sites, Phil Voorhees and Patrick Toomey of the Private Client Group in Newport Beach report that Cross Point Imperial Ventures LLC purchased a 3,824-sf center called Starbucks Plaza at 525 S. Valencia on the corner of Imperial Highway and Valencia in Brea for more than $2.5million, or more than $665 per sf, even with occupancy at only 68% at the time of sale. Tenants of the property are Starbucks and Christine Lee Beauty. Voorhees and Toomey represented the seller, Shivanian Investment Family Partnership, with the buyer, completing a 1031 exchange, represented by Matthew Kott of Studley. The seller credited the buyer with tenant improvements and six months rent towards the vacancy, with the property trading at full list price.

Another Starbucks-anchored center, this one in Cathedral City in the Inland Empire, sold for more than $1.9 million, or $458 per sf, in another deal brokered by the Private Client Group. Stache, Scruggs and Rick Strack report that the buyer, an individual investor, acquired the 4,250-sf Date Palm Centre at the corner of Ramon Road and Date Palm from Magazine Brothers LLC. in Cathedral City. At the time of sale, Date Palm Centre was 100% leased to Starbucks, Little Ceasars and Quiznos. The CBRE team says the transaction ranks among the highest price per sf paid for a comparable property in Cathedral City.