Shopping center in Southern California sells for $24.325M

LOS ANGELES, Jan. 23, 2024 – JLL Capital Markets announced today that it has closed the $24.325 million sale of Tri-City Center, a 151,709-square-foot shopping center in San Bernardino, California.

JLL represented the seller, Unilev Capital, and DPI Retail acquired the asset.

Built in 1987, the 100-percent-occupied center is anchored by a 24-Hour Fitness and Curacao, and additional tenants include Pollo Campero, Poke Bar, Barber, Cantos Jewelers and Pet World. Over 70% of the GLA is occupied by tenants that have operated at Tri-City Center since 2005 or earlier.

The property is located adjacent to the Interstate 10 Freeway, which offers visibility to over 200,000 cars per day, and is 0.4 miles from the Waterman Avenue on/off ramp. It is strategically positioned at the center of the submarket’s primary retail corridor and is surrounded by highly desirable retailers, including Costco, Sam’s Club and Home Depot. The property is also adjacent to the Tri-City Corporate Center, one of the largest office complexes in the trade area with over one million square feet across 17 Class A and B office buildings. In addition, within a five-mile radius of the center is a customer base of 253,000.

The JLL Retail Capital Markets team that represented the seller was led by Managing Director Bryan Ley and Senior Director Tim Kuruzar.

“Tri-City Center was a great sale that demonstrated not only the strong demand from private and high net worth investors for well-located retail real estate today but also the strength of gym-anchored properties with regional tenancy as major traffic draws,” said Ley.   

“The rapid rise in interest rates in 2023 highlighted the yield profile of Tri-City and bolstered the desirability of attractive in-place assumable financing. Combined with the freeway adjacent location and stickiness of the current tenancy, we expect Tri-City and like-kind assets to continue to perform well into the future,” said Kuruzar.

“Tri-City Center has been a great investment; besides its consistent performance, we have enjoyed the business relationship we developed with our major tenants.  We thank Bryan and Tim for their guidance and assistance from our acquisition in 2019 to the sale in 2023.  We also wish the very best for the new ownership and a special thanks to our team, Ian Konowitch, Peter Berges and Roxana Boiero of Unilev Capital who oversaw the successful execution of our business plan,” said Raymond Levy, President of Unilev.

“First and foremost, congratulations to all parties involved on the completion of this strategic move. Tri-City Center, with its prime location and diverse tenant composition, not only enhances but fortifies our expanding footprint within the dynamic Tri-City submarket. We recognize the significance of this addition to our portfolio and are enthusiastic about the prospects it brings. As we move forward, we're dedicated to maintaining and surpassing the high standards set by the previous ownership, ensuring Tri-City Center's continued success under our stewardship,” said Fred Vitt, President of DPI Retail.

JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment and sales advisory, debt advisory, equity advisory or a recapitalization. The firm has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.

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Unilev is a privately held commercial real estate investment and management organization with offices in California, Texas, and Minnesota. With more than 20 million square feet of transactions since inception and 6 million square feet under management, Unilev is a seasoned player in the office, retail, industrial, and multifamily sectors. Their strategic analysis, robust relationships, and management expertise have delivered long-term growth in value and returns for more than a quarter century.

DPI (and its subsidiary companies) is a multi-faceted real estate investment company with expertise in management, development/redevelopment, finance and leasing. The firm’s focus is to manage, develop and/or renovate shopping centers to institutional quality standards to benefit the company, its tenants, and the communities it serves.