The Shops to Stater Bros. in West Covina, CA was a well-located property at the signalized intersection of Amar Road and Valinda Avenue. The surrounding area featured strong density and commercial presence as well as easy access to major freeways.
Additionally, the subject property was located in a center anchored by Stater Bros, which provided for strong daily traffic to the shopping center. The property featured abundant parking and excellent curb appeal.
OneV Capital revitalized the overall look and feel of the center with minor renovations completed shortly after acquisition. The team was able to negotiate a few new leases for quality tenants who were new to the shopping center. The team also secured multiple renewals to bring existing tenants to market rates.
The Sale & Return
In early 2023, the team elected the post the property for sale. After a short marketing period, our brokerage team was able to generate multiple offers. The team ultimately selected a strong local Buyer in a 1031 exchange, and ultimately this Buyer proceeded to close and obtain a new loan for the property.
The property closed at a 5.60% cap rate and a price/SF nearing $400, both of which are high considering interest rates were near 8% at the time of sale. The sale represented a return of invested capital plus nearly 40% to investors.