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%.
Orange County Apartment Rents Pull Back
Hey guys, it's time for an update on the Orange County apartment rental market! After a decade of impressive growth, rents in the area are now starting to fall. In fact, asking rents have decreased by 3% since August 2022 and are continuing to trend downwards, even breaking seasonal patterns. So, what's causing this shift in the market? It seems that weaker rental demand and competition from new supply are the main culprits. Property managers have responded by lowering rents over the past two quarters, and new apartment buildings are offering up to six weeks of free rent during lease-up to attract tenants. Even upscale and luxury properties are feeling the effects of the market downturn, with asking rents down by 2.2% year over year. Three-bedroom units are now averaging around $4,300 per month, while two-bedroom apartments are going for $3,400 per month, and one-bedroom and studio units are renting for $2,800 and $2,500 per month, respectively. The trend is a significant departure from historical patterns, where Orange County's rent growth has typically outpaced the national average. However, 2022 saw only a 2.5% gain, which was below the national average. As vacancy rates in the area continue to climb towards historical averages from a record low set during the pandemic, rent growth is expected to slow down further. In fact, market-wide asking rent growth may even dip into slightly negative territory in the coming months. If the economy falls into recession in 2023, it's possible that rents may give up even more gains. So, if you're in the market for an apartment in Orange County, now may be a good time to take advantage of the current rental rates before they start to climb again.
In the Press: Inland Empire rental, housing prices on the rise as LA, OC residents relocate
In the Press: Inland Empire rental, housing prices on the rise as LA, OC residents relocate We are finding more and more people working in L.A. or other counties or states, and they are relocating to the Inland Empire where it is affordable,” said Michael Rademaker, president and CEO of MGR Property Management. ABC7 covered Michael Rademaker’s report on the influx of renters leaving LA for the Inland Empire. For more, see the full report: ABC7 Eyewitness News[/ffb_param][/ffb_paragraph_0]
Recent Posts
