Colliers Team Negotiates $19 Million Sale of Riverside County Shopping Center
Grocery-Anchored Oak Creek Retail Center Brings Multiple Offers in Wildomar
As demand for grocery-anchored neighborhood retail centers continues to attract record numbers of investors, Colliers International has negotiated the $19 million sale of Oak Creek II Shopping Center in the rapidly growing municipality of Wildomar in Riverside County.
Shadow-anchored by an Albertsons supermarket, the 71,899-square-foot neighborhood shopping center is located at 23865-23885 Clinton Keith Road, one of the city’s most heavily trafficked thoroughfares, adjacent to Interstate15. Oak Creek II is an expansion, or the second phase, of adjacent Oak Creek Plaza.
Led by Senior Associate John Sharpe, the Colliers team negotiating the transaction included Executive Vice President Jereme Snyder and Senior Vice President Eric Carlton, all based in the brokerage firm’s Irvine office. They represented the seller, Strata Equity Group Inc., a privately held and managed real estate investment and development firm based in San Diego. The property was sold to an all-cash California-based buyer, represented by Mark El Tine of KW Commercial.
“This transaction demonstrated the continuing demand for strong-performing, stabilized multi-tenant retail assets in Southern California,” said Sharpe. “Oak Creek II proved attractive to multiple bidders due to its diverse tenant mix with limited near-term lease expirations, excellent freeway frontage, attractive fixed rental increases, and strengthening area demographics.”
Built in 2008, the center, which is located along what city officials call the Miracle Mile Corridor - a growing trade area with plans to continue developing both residential and commercial projects - is comprised of six separate parcels. At the time the transaction closed, its current occupancy rate was 96% with a mix of national- credit tenants, local service retailers and national-chain restaurants. Tenants include ACE Hardware, Panda Express, Denny’s, Sprint Mobile, Fitness 19 and Massage Envy.
Located at one of the city’s most heavily trafficked thoroughfares just off Interstate 15, the 6.89-acre property includes a separate, two-story, 23,000-square-foot office building, which is nearly fully occupied by the City of Wildomar.
“By focusing on the strong sales performance of each tenant and showcasing Oak Creek’s potential upside, we defended our client’s asking price and successfully consummated the deal at one of the most aggressive CAP rates for a similar property in the region,” Sharpe noted.