|Note: This story was updated August 14, 2019 to include the name of the buyer
JH Real Estate Partners Inc, out of Newport Beach, acquired a 393.5k sf, majority portion of Jess Ranch Marketplace, an institutional-quality retail center in Apple Valley, for $89 mil, or $226/sf. The property was sold by Weingarten Realty.
Jess Ranch Marketplace, located at 18989 Bear Valley Rd, totals 705k sf of space and includes major national tenants such as Target, Winco Foods, Burlington, 24 Hour Fitness, Cinemark, Best Buy, Bed Bath & Beyond, PetSmart, Rite Aid, Big 5 Sporting Goods, Staples, 99 Cents Only Stores and Ulta. Target, which recently completed a store remodel, along with Winco Foods, Staples and 99 Cents Only Stores, were not a part of the sale.
The blue-chip tenant roster also includes Famous Footwear, Kirkland’s Home, Buffalo Wild Wings, Bank of America, Red Robin, Western Dental, CareMore, Banner Mattress, rue21, Carter’s, Denny’s, Verizon Wireless, Massage Envy, Sprint, OshKosh B’gosh, Jack in the Box, Chipotle, CareMore’s Nifty After Fifty, AT&T, GNC, Golden Chopstix, Jersey Mike’s, The Flame Broiler and MetroPCS.
The property is more than 98% leased, and more than 90% of the leased GLA is occupied by regional and national tenants. The center has a dominant market position, with more than 1.1 msf of GLA at the intersection, making it one of the largest and most dominant open-air shopping centers within the entire Inland Empire (Riverside / San Bernardino MSA) trade area.
Lucescu Realty, led by President Mark Lucescu, represented Weingarten Realty in the sale. Weingarten, headquartered in Houston, TX, is a national REIT that owns, manages, acquires, develops and redevelops strategically located neighborhood and community shopping centers in major metropolitan markets across the United States.
According to Lucescu, in discussing the latest market trends, "We expect shopping centers posting strong gross sales to continue to garner very high investor demand due to the dearth of available inventory and the surplus of capital pursuing these types of offerings. In addition to urban areas in gateway cities we also anticipate properties with similar fundamentals in the higher growth markets throughout the western U.S. to continue to be highly sought after as well.”