Inland Empire Retail Asset Trades in 1031 Exchange

Center Pointe. Image courtesy of JLL Capital Markets

Tourmaline Capital has sold Center Pointe, a 41,461-square-foot, grocery-anchored retail center in Menifee, Calif. JLL Capital Markets brokered the $24.6 million transaction on behalf of the seller. A private investor acquired the asset through a 1031 exchange.

At the time of the sale, the property was 96 percent leased to anchor tenant Sprouts Farmers Market, as well as Wendy’s, Olive Garden, Tacos & Tequila and Paris Nails, among others.

Located at 27281 Newport Road in the Menifee Town Center area, the shopping center is easily accessible from Interstate 215. The six-building retail center was completed in 2021 on a 7.7-acre site, as shown by CommercialEdge.

Managing Director Gleb Lvovich, Senior Director Daniel Tyner, and Managing Director Geoff Tranchina of JLL Retail Capital Markets acted on behalf of the seller.

The staying power of grocery-anchored centers

In a prepared statement, Lvovich said that the Center Pointe sale aligns with a trend observed by JLL, where grocery-anchored shopping centers in prime locations continue to appeal to investors due to their steady income and attractive returns. Tyner added that grocery-anchored retail remains strong, and this deal is an example of the dynamic 1031 exchange transaction activity on the West Coast.

In another recent similar transaction, Gerrity Group sold its grocery-anchored retail center in Las Vegas to a 1031 exchange California buyer. Craig Marketplace changed hands for $41.2 million.