Meadows Village, an 80,553-square-foot shopping center located in Temecula Valley, recently sold in less than five months, illustrating the continued demand of daily needs retail. The sale price was $26.26 million.
The grocery- and drugstore-anchored property attracts solid e-commerce-proof tenants including Baron’s Market, CVS Pharmacy, EOS Fitness, Starbucks, The UPS Store, Wells Fargo and Subway. The asset is centrally located at 31771-31963 Rancho California Rd. in an established residential community. The average household income is approximately $120,000 within a three-mile radius.
Colliers’ El Warner, Caitlin Zirpolo, Charley Simpson, Jordan Gomez and Peter Orth closed the transaction in what was a volatile year for many retailers. While transaction velocity was down nearly 75 percent in 2020, Warner believes cap rates have remained relatively strong because of the significant shortage of retail product on the market.
“Meadows Village went to market at the height of the pandemic,” says Warner. “Despite the negative perception surrounding retail, current buyer demand for daily needs shopping centers is able to absorb the limited supply of available assets on the market today, thereby holding cap rates at pre-pandemic levels. Most retail landlords are focused on tenant-related issues and not currently considering taking assets to market despite the demand.”
Lisa Brown has more than 30 years of experience in corporate communications and marketing management with organizations including Grubb & Ellis, Marcus & Millichap and NAIOP.
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