A chance to purchase a multi-tenant shopping center in Ontario has become available with the Club Center located at 295 East Caroline St. recently placed up for sale for $16.98 million, or approximately $195 per square foot. The retail asset totals 87,123 square feet and sits on a plot of 3.62 acres of land.
The Corona del Mar-based team of Hanley Investment Group has been tasked with the sale, with Kevin Fryman and Sean Cox leading the marketing efforts. Property records show that the site is currently owned by Cci Club Sb LLC, an entity that shares an address with Greenwood Village, Colo.-based Cadence Capital.
Originally built in 1990, the Club Center is fully leased, has a cap rate of 7.25 percent and a net operating income of $1.23 million. The steady tenants have leases covering government, office, medical and entertainment uses, with all tenants having recently signed multi-year lease extensions. Over 60 percent of the retail asset has been leased out to San Bernardino County, and the County’s Fire Protection Office recently more than doubled their leased space to now cover 19,000 square feet.
Besides the county offices, the other tenants include Building Bridges Foster Family Agency currently leasing 13,000 square feet, Eclipse Gymnastics which leases just over 12,000 square feet and Central Occupational Medicine Providers which leases approximately 9,200 square feet.
The San Bernardino County-anchored retail center is located in close proximity and can service the neighboring Loma Linda University Medical Center, as well as a variety of county and government offices located nearby. It also has transportation links to both US Interstates 10 and 215, both of which are within easy reach.
According to the Kidder Mathews Inland Empire Retail Market Report for the second quarter of 2023, the Inland Empire retail market shows rental rates, construction deliveries and unemployment all trending up, while vacancy rates are trending down. The report showed that the retail market is continuing to see some sales activity as well, with some of the top sales transactions including: the 68,000-square-foot Meadows Village Shopping Center in South Riverside was sold to Foothill Village Plaza LLC for $27.7 million, or approximately $405 per square foot; the 25,000-square foot Murrieta Automall also in South Riverside was sold to White Topi LLC for $10.2 million, or around $417 per square foot; ande the 17,000-square-foot South Sierra Plaza in the Airport Area was purchased by EMM Property LLC for $6 million, or approximately $348 per square foot.
As the regional retail market continues to experience decreased new construction and limited under construction projects, The Club Center, with the sale price below the recent market average and a full roster of steady tenants, could present a potential opportunity for investors looking to enter the retail market in the Inland Empire area.
