Sabre Springs Plaza sells for $6.8 million, 5.58% cap rate
San Diego CA— CBRE Vice Chairman Philip D. Voorhees announced today that he and the National Retail Partners-West (NRP-West), along with Reg Kobzi from CBRE San Diego, completed the sale of Sabre Springs Plaza in San Diego, Calif., a 15,038 SF retail convenience center. At the time of sale, the offering was 100-percent leased to a synergistic tenant lineup consisting of 7-Eleven along with 12 other retail, restaurant and service-oriented tenants. The sale price was $6.8 million, representing a 5.58% cap rate.
CBRE retail experts Voorhees, Sean Heitzler, Megan Wood, and Reg Kobzi represented the seller, Capstone Advisors, a San Diego-based real estate investment, management and development firm. The buyer, represented by CBRE Executive Vice President Gary Stache and Kevin Foley, was a Los Angeles-based private investor who purchased Sabre Springs Plaza to complete a 1031 Exchange.
“Sabre Springs is home to internet-resistant tenants providing convenience, value, service and medical uses that have proven highly resistant to internet competition. No single tenant accounts for a significant portion of the income, making this asset very stable and resilient. It’s the perfect 1031 exchange replacement property for leveraged cash-on-cash-focused investor; the exact profile of the Sabre Springs buyer, said Voorhees.”
Stache stated, “The buyer was looking for a well-located investment with stable cash flow and this property fit the bill perfectly.”
In addition to handling the investment sale, Shaun Moothart and Jennifer Ansari with CBRE’s Debt and Structured Finance Team, arranged the 10-year fixed hybrid, 3.85%, loan of $3.3 million for the buyer.
According to Moothart, “Sabre Springs Plaza was a great example of just how competitive debt pricing and terms are for a high-quality, well-located retail asset. Working alongside CBRE’s investment sales teams, this was a great execution for all involved.”
Built in 2004, Sabre Springs Plaza is situated on ±1.35 acres, just east of the I-15 and located at 11385-11395 Poway Road.
CBRE Press Release
“Sabre Springs Plaza’s conventional site plan, hard-corner location and c-store provides daily necessities that cater to the immediate trade area. The wide spread between the cap rate and interest rate yield provided a win-win for both buyer and seller,” said Wood.
According to NRP-West, CBRE’s marketing efforts distributed more than 1,308 offering memoranda and through the team’s “managed bid” offer process, generated 7 offers to purchase Sabre Springs Plaza.
“The strong competition to acquire Sabre Springs Plaza indicates the continued preference to own high-quality, quintessential strip centers throughout Southern California,” said Heitzler.
With this closing, CBRE’s NRP-West team has completed a total of 50 retail investment sales over the last 12 months and approximately $11.5 billion in successfully closed retail transactions.
The NRP-West team focuses exclusively on retail investment properties in the western states, including California, Oregon, Washington, Nevada, Arizona and Hawaii, representing the most accomplished retail investors in the US. The team’s ability to collaborate across CBRE’s multidiscipline platform enhances its role as strategic advisors to western U.S. clients in the disposition and acquisition of retail properties and ensures the delivery of superior results in today’s investment market. Long recognized as industry-leading investment experts, the NRP-West team continues to specialize in portfolio sales, anchored centers, strip centers, single-tenant assets, specialty retail projects, REO and Receivership assets and parcelized disposition strategy opportunities. Based in Orange County, California, the team consists of specialists with institutional and private client relationships and leverages institutional quality knowledge and service across unparalleled access to private capital investors and the brokers who represent them, domestically and around the world. View listings: www.nrpwestlistings.com.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2018 revenue). The company has more than 90,000 employees (excluding affiliates) and serves real estate investors and occupiers through more than 480 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.