Colliers Retail Team Negotiates $32 Million Sale of Chino Shopping Center
Demand Among Investors Remains Strong in the Inland Empire
In what is being described as an accurate reflection of the strong, across-the-board economic fundamentals of both the region and the nation as a whole, a team of retail investment specialists from Colliers International has completed negotiations on the $32 million sale of Chino Towne Center, a dominant “daily needs” community shopping center in the west San Bernardino County municipality of Chino.
Anchored by CVS Drugs, Chase Bank and a 24-Hour Fitness Sport Club, the 117,419-square-foot and nearly fully occupied center benefits from its location at 12101-12233 Central Ave., the city’s major thoroughfare, and by direct access to the adjacent Pomona Freeway (SR-60). The few vacancies that do exist are expected to be filled quickly.
“Prospective investors were attracted to the center for three major reasons,” said Senior Vice President Michelle Schierberl, a retail investment specialist who led the Colliers team responsible for marketing the center. “It provides the investor with a very solid and diversified income stream generated by credit tenants, its location along one of the busiest major boulevards in the city, and its potential to be divided into multiple parcels that can then be marketed and sold separately.”
A parcelization can allow a buyer to sell off separate pads in the future and help maximize returns on the original investment, Schierberl noted. With credit tenants in place with long-term leases that call for annual rate increases and multiple options for renewals, the center’s potential to be divided into separate, single-tenant, triple-net parcels that could be sold separately with aggressive capitalization rates led to enhanced investor interest. Additional single-tenant, triple-net properties could be created subject to the application for, and legal approval of, additional parcels.
“As part of the Inland Empire, which continues to see record growth in jobs, housing, people and industrial development, more national-brand corporate giants are locating their logistics, warehousing and manufacturing centers here because there is still a supply of developable land,” Schierberl said. “Like the ripples made when a stone is thrown into the middle of a pond, the ripples here include more jobs bringing more people who need more convenient places to bank, get their hair cut, work out, get their nails done, buy a cell phone, grab a cup of coffee, eat a sandwich and so much more.”
Schierberl was joined on the Colliers marketing team by SVP Donald Ellis, who like Schierberl is based in the firm’s Irvine office, and by San Diego-based SVP Mark McEwen. The team represented both parties to the transaction. The selling entity was a tenant-in-common group known as SCI Chino Fund LLC. The Buyer was Chino Central Group LLC.
The strong-performing shopping center’s tenant roster also includes a FedEx/Kinko’s location, Dearden’s furniture, Supercuts, 4G Wireless, Coast Dental, The Kitchen Center, H&R Block, City Insurance, and a host of other businesses. It has a current vacancy rate hovering near 5%, noted Schierberl, and that is expected to drop as demand for well-located and well-anchored centers like this one continues to soar.
“This is a stable neighborhood center with an income stream generated by a mix of both national credit tenants and local merchants,” Ellis added. “It’s location on Central Avenue with an average traffic count of 93,000 cars a day only increased interest among a variety of investment groups, and I emphasize that in the plural – ‘groups.’ We had several interested and qualified parties ready to buy this enter.”