Buyer Hopes for Mixed-Use Project

RIVERSIDE, CA-CT Realty Corp. of Newport Beach has acquired the 145,778-sf Magnolia Square retail center for $14 million and plans to convert it to a mixed-use retail, office and residential development if a proposed general plan amendment is approved. Robert Campbell, president of CT Realty, explains that the City of Riverside is processing a general plan amendment that would change zoning for the area including the 16.7-acre Magnolia Square from commercial to village mixed use. If the zoning is changed, CT will redevelop the aging retail center into a new, mixed-use property with retail, office and residential components. CT plans to partner with Newport Beach-based Fieldstone Communities for the residential portions of the property, which it bought from UDO Investors of Los Angeles. Magnolia Square's 16.7 acres includes the 10.1-acre retail site and 6.6 acres of vacant, undeveloped land. It is at 10411-10491 Magnolia Ave., across the street from the Galleria at Tyler regional shopping center and the 91 Freeway. The four retail buildings, including a 102,400-sf building formerly anchored by Gemco, were originally constructed in 1979. CT Realty and UDO Investors were represented in the transaction by Sean Deasy, Sam Alison, Patrick Toomey and Rick Strack from CB Richard Ellis's Newport Beach, Los Angeles and Ontario offices. CT Realty's California Fund IV provided equity financing for the acquisition, with Fremont Investment and Loan providing the debt financing. The Magnolia Square project is one of the latest in a series of acquisitions, sales, developments and redevelopments by CT Realty since the company was established in 1994. It has completed more than 140 transactions, totaling more than $2 billion, involving industrial, suburban office, multifamily, senior housing, retail, golf course and self-storage properties.