Costanzo Investments LLC, developer of Spruce Plaza, has sold the recently completed 15,555-square-foot, class-A retail center at 10877-10895 East Foothill Boulevard in the master-planned community of Terra Vista in Rancho Cucamonga, California, according to a release from a representative of SRS Real Estate Partners’ National Net Lease Group. The center sold for $15.625 million to a family trust from the Bay Area, the statement says.
Spruce Plaza comprises two separate parcels and is 100 percent leased to Blaze Pizza, Tokyo Joe’s, Luna Grill, Jersey Mike’s, Café Rio and Habit Burger, according to the release, which also notes that the transaction achieved a cap rate of 5.32 percent, and per-square-foot price of $1,005. A source unrelated to the transaction reports to SoCal Real Estate that this transaction represented the lowest cap rate and highest per-square-foot price for any retail-center transaction over $10 million in the Inland Empire over the past 10 years, according to CoStar.
The statement says SRS National Net Lease Group’s managing principals Matthew Mousavi and Patrick Luther, along with SRS EVP Garrett Colburn of the firm’s Newport Beach office, represented the seller in the transaction, while the buyer was represented by Ralph Borelli and Caleb Scherer of Borelli Investment Company.
Spruce Plaza is located across from the 611,000-square-foot Terra Vista Town Center, 2 miles west of I-15, and 2 miles south of State Highway 210, according to the release, which adds that it is also adjacent to Rancho Specialty Hospital, Rancho Cucamonga Office Park, and a Best Western.
Mousavi is quoted in the release as saying, “Spruce Plaza is representative of the type of retail center being sought after by the market in the current environment. That is a next-generation, food-oriented and lifestyle-centric retail center in a highly visible and accessible location within a healthy Southern California market.”
According to Mousavi in the release, the buyer is a first-time investor in the Southern California market. He adds that SRS structured the sale in a staggered manner in order to allow both parties to facilitate their exchanges.
New retail centers are popping up in the Inland Empire market. As we recently reported, Frontier Real Estate Investments will break ground October 5 on New Haven Marketplace, a new lifestyle shopping center in Ontario Ranch, California, according to a release from a representative of the firm sent to us exclusively. The project, slated to open in fall 2019, complements the master-planned community of New Haven in Ontario Ranch by Brookfield Residential, on which we also recently reported.