RIVERSIDE: Michaels, David’s Bridal-anchored shopping center sells for over $22 million
RIVERSIDE — Hanley Investment Group Real Estate Advisors, a nationally recognized real estate brokerage and advisory firm specializing in retail property sales, announced today that President Ed Hanley and Executive Vice Presidents Bill Asher and Kevin Fryman represented the seller in the sale of Michaels Plaza, a 62,952-square-foot, newly remodeled regional shopping center anchored by Michaels and located across the street from the 1.2 million square-foot Galleria at Tyler Mall in Riverside.
The sale price was $22.15 million.
The seller, an affiliate of San Francisco-based The Krausz Companies, Inc., was represented by Hanley, Asher and Fryman. The buyer, a private investor from Fullerton, Calif., was represented by Jefferson Kim of jKim Group, Inc. of Buena Park, Calif.
Built in 1987 on 5.0 acres and located at 10303-10357 Magnolia Avenue in Riverside, Krausz acquired Michaels Plaza in 2013, and implemented a multi-million-dollar renovation in 2016.
The property was 98 percent occupied at the time of the sale. Fryman commented that Michaels Plaza has about 94 percent national/regional tenants including Michaels, David’s Bridal, Lamps Plus, Armed Forces, The Flame Broiler, GameStop and Miracle Ear.
“The sale represents another prime example of a 1031 exchange buyer deploying their proceeds into a retail investment as a flight to quality and security,” said Fryman.
“Michaels Plaza attracted substantial interest due to its excellent location in a high-density retail trade area with over 2.5 million square feet of retail space within a one-mile radius,” Fryman explained. “Furthermore, its location of being situated directly across the street from the 1.2 million-square-foot Galleria at Tyler regional mall (with the only Nordstrom in the Inland Empire) was a significant selling point of the current and future long-term stability of the overall location.”
Asher commented, “In addition to the prime Riverside County location, the historical occupancy at the center was a key attribute to the sale. Approximately 83 percent of the tenancy has been located at the center since at least 2003, including Michaels and Lamps Plus since 1987, and David’s Bridal since 2003. Furthermore, all of the existing tenants have extended their leases for the last five years exemplifying a reliable and stable income stream for the buyer.”
Hanley noted that, eight shopping centers priced over $20 million have traded hands in the Inland Empire in the last 12 months, with Hanley Investment Group being involved in three of the eight sales. Only five shopping centers priced over $20 million sold in the Inland Empire in the 12 months prior (3Q 2015 – 3Q 2016).
“Overall the retail investment market in the Inland Empire has continued to improve and be a viable alternative option to the competitive Los Angeles and Orange County markets,” said Hanley. “We have seen more transactions in the last 12 months in Riverside and San Bernardino County, and although we have seen more inventory, it still hasn’t outweighed buyer demand.”
Hanley adds, “Buyers for anchored shopping centers are still starved for the right product that fits their acquisition criteria and return goals. Buyers have been more cautious and selective while sellers continue to adjust to a transitioning market of fluctuating interest rates that is affecting disposition value expectations compared to the last 24 months of peak market conditions.”
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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.