Ledo Capital Obtains Refi for Inland Empire Retail Asset

The District at Moreno Valley. Image courtesy of JLL Capital Markets

Ledo Capital Group has obtained a $13.4 million loan for the refinancing of The District at Moreno Valley, a 52,081-square-foot, grocery-anchored shopping center in Moreno Valley, Calif. Working on behalf of the borrower, JLL Capital Markets secured the financing through Manufacturers Bank.

A Sprouts supermarket serves as the anchor tenant for The District at Moreno Valley, which was completed last year. Other tenants at the property include KFC, The Joint Chiropractic, WSS and Starbucks.

READ ALSO: What Will Retail Look Like in 2023?

According to Newmark, The District Moreno at Valley spans 30 acres and serves a population of 220,472 within a 3-mile radius. The same source reveals that the retail center is currently undergoing renovations, while an adjacent commercial business park is also being constructed.

Senior Director Matt Stewart, along with Analysts Chris Jaffe and Daniel Skerrett, headed the JLL Capital Markets Debt Advisory team representing the borrower.

Grocery-anchored to go

Situated at the junction of Heacock Street and the 60 Freeway, the shopping center is located in a regional retail trade area and is exposed to a traffic of 58 million vehicles annually, JLL reveals. Moreno Valley Mall is also nearby, less than 2 miles from the property.

As retail investors continued to capitalize on demand for grocery-anchored retail, vacancy dropped to 5.8 percent at the end of the fourth quarter of 2022 from 6.6 percent one year prior, according to a Kidder Matthews report. The same source reveals that the market registered positive absorption during the same time frame.

According to JLL, Moreno Valley is the second-largest city in the Inland Empire when it comes to land area, with ample room available for future residential development, ensuring its position as one of the fastest-growing cities in the state in the long term.