Terra Vista Town Center Sale: A $7.5 Million Retail Success Story in Rancho Cucamonga

Terra Vista Town Center, a retail property in Inland Empire, California, sold for about $7.5 million and was occupied by anchor tenants Target and Hobby Lobby. The property was fully occupied at the time of sale.

Progressive Real Estate Partners facilitated the sale of the 21,918-square-foot shopping center. The property at 10582 Foothill Blvd. in Rancho Cucamonga, west of San Bernardino, has 9 tenants. The transaction was a 1031 exchange, meaning the seller can defer capital gains taxes by using the profit to acquire new property.

“With higher construction costs and rising interest rates continuing to impede the development of new retail space, the supply of existing shop space in the Inland Empire remains constrained. As a result, owners of quality retail centers are benefiting from rising rental rates and stronger tenants. We expect this trend to continue,” said Greg Bedell of Progressive Real Estate, who was involved in the deal.

“The buyer was particularly attracted to the location of these shops nestled between Target and Hobby Lobby. Additionally, the high-income trade area, diverse tenant mix and very low retail vacancy rate at Terra Vista Town Center and Rancho Cucamonga as a whole made the asset very desirable," added Paul Su, a senior vice president for Progressive Real Estate, who was involved in the deal.

The Rancho Cucamonga area currently boasts a retail vacancy rate of 4.16%, lower than that of the overall Inland Empire, which is 5.85%.