By Lilly Riddle
A new retail center has gone on the market just south of Los Angeles. Nestled in Southern California’s Temecula Valley wine region, Bel Villaggio Shops presents a unique investment opportunity in one of the state’s most affluent and rapidly growing areas. Poincare Group is selling the 117,826-square-foot retail center for $34 million, or roughly $289 per square foot.
According to a marketing brochure from CBRE, the property offers a $16 million assumable loan at a 3.57 percent interest rate. This financing structure, coupled with a projected 10 percent cash flow, makes Bel Villaggio a potentially enticing investment opportunity for buyers. Constructed in 2005, the 37-unit center features modern design, including award-winning architecture by MCA Architects. It is currently 86 percent occupied.
Temecula Valley’s appeal as a premier wine and tourist destination contributes to Bel Villaggio’s potential. The region attracts more than 3.1 million annual visitors who spend in excess of $1.1 billion, providing a substantial and consistent consumer base for the center’s retailers.
The center is located within a high-income demographic, with more than 26,000 residents within a one-mile radius boasting average household incomes exceeding $117,000. Over 109,000 people within a three-mile radius and average household income exceeding $129,000, and over 197,000 people within a five-mile radius and average household income exceeding $134,000, according to the market listing.
The property’s strategic positioning further enhances its attractiveness. Situated just one block from the I-15 freeway with more than 198,000 cars passing daily, and Winchester Road/Highway 79 with more than 78,000 cars per day, Bel Villaggio has both high visibility and accessibility. Its proximity to the Promenade Mall, with a traffic count of 47,000 cars per day, adds another layer of foot traffic potential.
Bel Villaggio’s design is also a prominent feature. The center’s European village atmosphere, complete with parking, landscaping, pedestrian walkways and seating areas, creates an environment conducive to shopping and promotes tenant retention. Of 37 potential tenants, 32 currently occupy the center, including Macaroni Grill, Soho Ramen, Plato’s Closet, Goodwill, Weight Watchers and Original Pancake House.
Vanessa Haddad and Alan Krueger of CBRE are heading the marketing efforts for this property.
