South Hills Plaza Sells for $20,695,000, 6.8% Cap Rate
WEST COVINA, CALIF. – December 15, 2014 – (RealEstateRama) — CBRE Senior Vice President Philip D. Voorhees announced today that he and the National Retail Investment Group – West (NRIG-West) team completed the sale of South Hills Plaza, a 120,589-square-foot community shopping center in the city of West Covina, CA. South Hills Plaza is anchored by Marukai Market and 24 Hour Fitness, along with national brand names and regional favorites including Taco Bell, Subway, USPS, and Charter Communication. The sale price was $20,695,000, representing a 6.8% cap rate.
CBRE’s retail investment experts Voorhees, Jimmy Slusher, Megan Read, Matt Burson, Brad Rable and John Read, represented the seller, a Los Angeles-based partnership. The buyer, also represented by Voorhees and the NRIG-West team, was LT Global (LT Holdings in the US), a Hong Kong-based publicly-traded investment power-house.
“South Hills Plaza is our team’s inaugural transaction with a publicly-traded, Hong Kong-based real estate investor directly acquiring US retail; we typically reach foreign investors through other financial advisors, CPAs and attorneys,” said Voorhees.
Built in 1982 with additional renovations made in 2005, South Hills Plaza is a 9.43-acre site that sits at the signalized hard corner location of Azusa Avenue (State Highway 39) and E. Aroma Drive in the heart of West Covina. The entire site is owned, no pads have been sold.
According to Jimmy Slusher, the CBRE team’s marketing system distributed more than 372 offering memoranda to investors and brokers, and through the team’s “managed bid” offer process, generated more than 23 offers to purchase the property. “LT Global was persistent and tenacious; the competition was rather intense,” noted Slusher.
With this closing, CBRE’s NRIG-West team has closed 106 transactions since the start of 2012 for a total consideration of $2.28 billion. In total, the NRIG-West team has listed and sold more than $8.24 billion in retail transactions. Select NRIG-West Team listings include Tucson Place in Tucson, AZ (best offer); White Lane Village in Bakersfield, CA (listed for sale for $7,360,000); PetSmart at Tri-City Corporate Centre in San Bernardino, CA (listed for sale for $4,201,000), to name a few.
NRIG-West Team focuses exclusively on retail investment properties in the western states (including CA, OR, WA, ID, NV, MT, WY, UT, AZ, NM and HI). The Team’s ability to collaborate across CBRE’s multi-discipline platform enhances the team’s role as strategic advisors to Western U.S. clients in the disposition and acquisition of retail properties, and ensures the delivery of superior results in today’s investment market. Long recognized as industry-leading investment experts, the NRIG-West Team continues to specialize in portfolio, anchored centers, strip centers, single-tenant assets, specialty retail projects, REO and Receivership assets and parcelized disposition strategy opportunities. Based in Orange County, Calif., the Team consists of specialists with institutional and private client relationships, and leverages institutional quality knowledge and service across unparalleled access to private capital investors and the brokers who represent them, domestically and around the world. View listings: listings.nrigwest.com
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2013 revenue). The Company has approximately 44,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through approximately 350 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website at www.cbre.com.