LAKE ELSINORE: Oak Grove Crossing shopping center sells for $11.6 million
LAKE ELSINORE — Hanley Investment Group Real Estate Advisors, a nationally recognized real estate brokerage and advisory firm specializing in retail property sales, recently announced that the firm represented the buyer and seller in the sale of Oak Grove Crossing, a 22,577-square-foot shopping center shadow-anchored by Target in Riverside County, Calif. Oak Grove Crossing is located at 18283 and 18285 Collier Avenue in the city of Lake Elsinore.
The purchase price was about $11.6 million.
Hanley Investment Group Executive Vice President Kevin Fryman represented the seller, a private investment partnership based in Murrieta. The buyer, a family trust from Orange, Calif., was represented by Hanley Investment Group Associate Jeff Lefko and Executive Vice President Bill Asher.
The property, which was built in 2006, is located on 2.36 acres and was 100 percent occupied at the time of the sale by 81 percent national and regional credit tenants.
National and regional credit tenants include McDonald’s with a drive-thru, Starbucks, GameStop, GNC, H&R Block, Pacific Dental, Papa John’s Pizza, Subway, Supercuts, Verizon and Yogurtland.
Fryman reports that the property enjoys long-term historical occupancy. “Approximately 77 percent of the tenants have been located at the center since it was built in 2006,” Fryman noted. “Since 2012, all of the shop tenants have signed a new lease or extended their lease.”
Fryman added, “The sale also included a stand-alone McDonald’s pad on a long-term ground lease.”
Target is the second largest discount retailer in the United States (ranked #38 on Fortune 500), according to Asher. “This location includes Target’s grocery concept as well as a CVS/pharmacy inside the store, driving ‘daily needs’ traffic to the center,” Asher commented. “Additional traffic draws include Bank of America and Tarbell Realtors, which are located in the shopping center, but were not a part of the sale.”
According to Fryman, Hanley Investment Group was the second brokerage firm to formally list the property. “The buyer was procured through our in-house collaboration to match the seller’s requirements with clients that we knew were active exchange buyers,” Fryman reported.
“We marketed the property with a potential break-up strategy,” said Fryman. “McDonald’s is separately parceled, which provided a unique opportunity to sell the McDonald’s pad on an individual basis in the future, taking advantage of the historically-low caps demanded by single-tenant buyers.”
“With the property located at the State Route 74 exit of the I-15 Freeway, Oak Grove Crossing is ideally positioned to draw customers from Lake Elsinore and the surrounding cities as well as commuters who use State Route 74 to get to and from work in nearby Orange County,” said Lefko. “The property is located at a signalized intersection with 52,000 cars per day, which further benefits the property.”
Lefko added that Oak Grove Crossing is the dominant retail trade area with limited shop tenant competition. Nearby power centers anchored by 99¢ Only, ALDI, Costco, Home Depot, Kirkland’s, LA Fitness, Lowe’s, Petco, PetSmart and Staples. There are no shop tenants in anchored centers in the immediate area on the west side of I-15.
The property also benefits from the area’s high population growth and affluent demographics, reports Asher. “Within a five-mile radius, the population grew by 61 percent between 2000-2016, with projected growth of nine percent between 2016-2021. The average household income is $76,000 within a five-mile radius of the property.”
Hanley Investment Group Real Estate Advisors is a retail investment advisory firm with a $5 billion transaction track record nationwide, who works closely with individual investors, lending institutions, developers, and institutional property owners in every facet of the transaction to ensure that the highest value is achieved. For more information, visit www.hanleyinvestment.com
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Trevor Montgomery runs Riverside County News Source and Shasta County News Source. Additionally, he writes for Riverside County based newspapers Valley News, The Valley Chronicle and Anza Valley Outlook and also writes for Bonsall/Fallbrook Village News in San Diego County.
Trevor spent 10 years in the U.S. Army as an Orthopedic Specialist before joining the Riverside County Sheriff’s Department in 1998. He was medically retired after losing his leg and breaking his back in an off-duty accident.
During his time with the sheriff’s department, Trevor worked at several different stations, including Robert Presley Detention Center, Southwest Station in Temecula, Hemet/Valle Vista Station, Ben Clark Public Safety Training Center and Lake Elsinore Station, along with other locations.
Trevor’s assignments included Corrections, Patrol, DUI Enforcement, Boat and Personal Water-Craft based Lake Patrol, Off-Road Vehicle Enforcement, Problem Oriented Policing Team and Personnel/Background Investigations. He finished his career while working as a Sex Crimes and Child Abuse Investigator and was a court-designated expert in child abuse and child sex-related crimes.
Trevor has been married for more than 26 years and was a foster parent to more than 60 children over 13 years. He is now an adoptive parent and has 13 children and 13 – soon to be 14 – grandchildren.