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Shopping Strip

West Covina Center

730 S Orange Ave, West Covina, CA 91790

Listing Price: $8,000,000

Cap Rate
12.32%
Gross SF
122,756
Rentable SF
122,756
Price/Gross SF
$65.17
Lot Size
8.22 acres
Year Built
1961

Investment Overview

Marcus & Millichap (“M&M”) has been engaged on an exclusive basis to present the opportunity to acquire the leasehold interest in West Covina Center (the “Property”), a 100 percent occupied, 122,756 square-foot essential retail center that is ideally positioned in the heart of Southern California’s San Gabriel Valley. West Covina represents one of the densest population centers in the Western United States, as evidenced by the 533k residents living within five miles of the Property. Taken together with West Covina Center’s average household income of approximately $88k per year, the shopping center benefits significantly from almost $12.3 billion in consumer purchasing power within its trade area. The Property boasts a stable and diversified rent roll with a weighted average lease term of 12.4 years, while also benefiting from its internet resistant merchandising mix. The sale of West Covina Center is subject to a ground lease that expires on 4/20/2037, at which time ownership of the improvements will revert back to the ground lessor. A buyer can create significant value by acquiring the fee simple interest in the Property during the investment holding period.

Investment Highlights

  • West Covina Center was fully renovated in 2020, allowing current ownership to lease more than 102,000 square feet to Floor & Décor in May of 2020 despite the ongoing COVID pandemic.
  • 83 percent of West Covina Center's GLA is secured by a brand new, 15-year lease with Floor & Decor, creating a stable cash flow stream with contractual rent increases.
  • West Covina Center boasts a stable and diversified rent roll with a weighted average lease term of 12.4 years.
  • A buyer can create significant value by acquiring the fee simple interest in the Property during the investment holding period, as well as utilizing a cost segregation study to accelerate the depreciation schedule.
  • The Property can be acquired at an attractive 12.3 percent capitalization rate and the full amount of the acquisition price can be depreciated for tax purposes. Further, West Covina Center is comprised of only three tenants, so management responsibilities at the Property are minimal.
  • The Property is prominently positioned between W. Covina Parkway (19,691 vpd) and W. Cameron Avenue (13,232 vpd) on Toluca Avenue, and enjoys an expanded trade area due to its location immediately adjacent to Interstate-10 (234,023 vpd). Further, West Covina Center benefits significantly from a diverse and internet resistant merchandising mix that remained opened during COVID-19 lockdowns due to its "essential" classification.
  • West Covina Center benefits significantly from its 5-mile population ring of more than 533k residents. Taken together with the Property's 5-mile average household income of approximately $88k, West Covina Center boasts almost $12.3 billion in consumer purchasing power within its trade area.

Exclusively Listed By

Listing Price: $8,000,000

Cap Rate
12.32%
Gross SF
122,756
Rentable SF
122,756
Price/Gross SF
$65.17
Lot Size
8.22 acres
Year Built
1961

Investment Highlights

  • West Covina Center was fully renovated in 2020, allowing current ownership to lease more than 102,000 square feet to Floor & Décor in May of 2020 despite the ongoing COVID pandemic.
  • 83 percent of West Covina Center's GLA is secured by a brand new, 15-year lease with Floor & Decor, creating a stable cash flow stream with contractual rent increases.
  • West Covina Center boasts a stable and diversified rent roll with a weighted average lease term of 12.4 years.
  • A buyer can create significant value by acquiring the fee simple interest in the Property during the investment holding period, as well as utilizing a cost segregation study to accelerate the depreciation schedule.
  • The Property can be acquired at an attractive 12.3 percent capitalization rate and the full amount of the acquisition price can be depreciated for tax purposes. Further, West Covina Center is comprised of only three tenants, so management responsibilities at the Property are minimal.
  • The Property is prominently positioned between W. Covina Parkway (19,691 vpd) and W. Cameron Avenue (13,232 vpd) on Toluca Avenue, and enjoys an expanded trade area due to its location immediately adjacent to Interstate-10 (234,023 vpd). Further, West Covina Center benefits significantly from a diverse and internet resistant merchandising mix that remained opened during COVID-19 lockdowns due to its "essential" classification.
  • West Covina Center benefits significantly from its 5-mile population ring of more than 533k residents. Taken together with the Property's 5-mile average household income of approximately $88k, West Covina Center boasts almost $12.3 billion in consumer purchasing power within its trade area.

Investment Overview

Marcus & Millichap (“M&M”) has been engaged on an exclusive basis to present the opportunity to acquire the leasehold interest in West Covina Center (the “Property”), a 100 percent occupied, 122,756 square-foot essential retail center that is ideally positioned in the heart of Southern California’s San Gabriel Valley. West Covina represents one of the densest population centers in the Western United States, as evidenced by the 533k residents living within five miles of the Property. Taken together with West Covina Center’s average household income of approximately $88k per year, the shopping center benefits significantly from almost $12.3 billion in consumer purchasing power within its trade area. The Property boasts a stable and diversified rent roll with a weighted average lease term of 12.4 years, while also benefiting from its internet resistant merchandising mix. The sale of West Covina Center is subject to a ground lease that expires on 4/20/2037, at which time ownership of the improvements will revert back to the ground lessor. A buyer can create significant value by acquiring the fee simple interest in the Property during the investment holding period.

Exclusively Listed By

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