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CHINO HILLS, CA-In a deal with a remarkably low cap rate for these troubled times, a 263,757-square-foot portion of the 539,270-square-foot Crossroads Marketplace has sold for $79 million. According to Phil Voorhees, a senior vice president in the Newport Beach, CA office of CB Richard Ellis, the deal’s 5.87% cap rate is the lowest achieved this year in the western US for any property valued above $21 million.

Voorhees, who represented the seller with CBRE colleagues Todd Goodman and Kirk Brummer, says the low cap rate was made possible by the generous terms of the property’s original $63 million loan, which the buyer was able to assume for a 0.5% fee. The seller, an undisclosed high net-worth private investor from the Pacific Northwest, acquired the property for $75 million in late 2007. He persuaded the lender to provide a 10-year loan at a 5.43% interest rate with interest-only payments through the entire term.

“It was the height of the real estate boom, and lenders were being very competitive,” Voorhees tells GlobeSt.com. “They felt this was a low-risk deal because so many tenants were in place under long-term leases that still had years to run. But because it’s an interest-only loan, the cash-on-cash return for the buyer is very strong.”

The property sold to SKT Investments, a joint venture between a family of Korean investors whose son lives in Los Angeles and Los Angeles-based Realty Land Co., whose principal, Edward Kim, represented SKT. Voorhees reports his team received offers from six prospects and negotiated with three of them. Significantly, all were high-net-worth investors. “There was no institutional interest,” he says.

Located at 12945-13251 Peyton Dr., Crossroads has a tenant list that includes PetSmart, Best Buy, Bed, Bath & Beyond, Steinmart, Sport Chalet and CVS Pharmacy. National and regional credit tenants occupy 91% of the gross leasing area and account for 81% of the rent. Most leases run through 2014 or later. Two anchor buildings occupied by Costco and Lowe’s were not included in the sale.

Voorhees says the sale demonstrates the ability of CBRE’s retail investment team to reach “one of a kind” private buyers that are only intermittently in the market. “Our team’s database-driven, cooperative marketing uncovered a broker representing a foreign investor with an immediate requirement for a large, high quality center,” he remarks. “Compared with portfolio sales, selling properties individually continues to yield the highest pricing and greatest surety of closing for sellers.”

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