VISALIA, Calif. – With a price tag of more than $15 million and a list of well-known national retailers either already occupying space or about to execute lease documents to occupy new storefronts, a major portion of Packwood Creek, this Central Valley city’s largest retail complex, has been sold to a private retail investment group based in Los Angeles, officials of Colliers International have reported.
Colliers Senior Vice Presidents Christopher Maling and David Maling represented the property owner, DBO Investments, in the transaction. This three-part deal was the Maling team’s 11th in the Central Valley and fifth in Visalia over the past 18 months. Both Maling’s are based in the brokerage firm’s Los Angeles offices.
“The Central Valley, especially Visalia and environs, offer exceptional rewards to the right investors,” said Christopher Maling. “While there is as much science as art to retail investing, when the right mix of national credit tenants and local retail establishments blend as well as they do here, and the center itself is located on the busiest street in the city, the risk is somewhat mitigated and investors have responded favorably.”
Built over a period of several years beginning in 2007, Packwood Creek Center, which managed to weather the recession better than most, has grown along with the city of Visalia and now totals 278,000 square feet on 25 acres. Much of the center is visible from and located on South Mooney Drive, the city’s major thoroughfare.
“One of the main reasons for the center’s success over the years has been its management’s conservative growth strategy and its location,” said Maling. “Many shopping center owners were wiped out during the recession by overbuilding and the loss of tenants. Here, it was just the opposite. The developer was able to build to demand and that’s why the construction cycle has taken seven years so far.”
The three parcels sold in this single transaction include an 8,000-square-foot pad that is occupied by Wet Seal and Corner Bakery and two buildings that together total nearly 30,000 square feet and house such national retailers as Lane Bryant, Tilly’s, and Kirkland’s. The last building is Dickie’s BBQ and a local established nail salon.
“Equally important to the existing retailers on these properties and to the investors who purchased them are the neighboring retailers who help drive consumers to the center,” said Maling. “When you have shadow anchors like Costco, Sports Chalet and Target, and other popular tenants like Gamestop and Starbucks all bringing foot traffic into the center, it makes a very positive statement to the investment community.”
Other retailers who occupy space at the center include Famous Footwear, Sprint, Verizon, BevMo, Taco Bell, Subway, Chilli’s, the Vitamin Shoppe, and a variety of others.
“This is an excellent opportunity for an investor to take advantage of the current income stream, ideal location of this asset and benefit from the roster of national credit tenants currently leasing space at the center who drive consumers to it,” added Maling. “Those are major selling points. When you can drive into a center, recognize all the names on the storefronts, and witness a constant flow of consumers coming and going, investors are more apt to want to pursue the opportunity and that was the case here.”
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