Overview

Description

Progressive Real Estate Partners is pleased to present the opportunity to acquire the Shops at University Square— a 100% occupied commercial strip center leased to 6 high performing and diverse service/restaurant/coffee tenants. The property is situated in Downtown Riverside, which is currently undergoing a renaissance with an estimated $330 million of recently completed and ongoing retail, hotel, and public works projects driving significant traffic to the downtown area. The property features fully NNN leases with embedded 3% annual increases, a diverse income stream with no individual tenant accounting for more than 24% of the center’s income, and ideal shop space sizes ranging from 750 SF to 1,750 SF (which tend to have the largest pool of replacement tenants, leading to lower overall vacancy risk). The property was recently remodeled with a new façade and modern paint scheme.

The subject property benefits from strong visibility along University Avenue, the primary thoroughfare serving Downtown Riverside, ultimately connecting the Downtown Area to UC Riverside.

Highlights

• 100% Leased to 6 E-Commerce Resistant Tenants – The asset features a robust mix of internet resilient tenants whose uses cannot be easily duplicated online. Examples include RAD Coffee, Miss Donuts & Bagel, and Mariscos Taco Shop.
• Fully NNN Leases – All of the center’s tenants are on industry standard AIR NNN leases with no caps on property taxes, insurance, or CAM.
• Diverse Tenant Mix – Unlike a single tenant asset where all the asset’s income is tied to one lease, the subject property’s income is spread across 6 tenants with no individual tenant accounting for more than 24% of the center’s income.
• Strong Income Growth – All leases feature embedded 3% annual increases. The all-cash yield grows to an estimated 7.00% by 2026.
• Limited Shop Space Competition – Strip centers (with parking included) are limited in Downtown Riverside, resulting in less competition and lower vacancy rates.
• Ideal Space Sizes Ranging from 750 SF to 1,750 SF – Retail space under 2,500 SF tends to have the largest pool of replacement tenants, reducing vacancy risk and creating more upside potential as supply remains limited.
• Clean Phase I Report & Detailed Due Diligence Package – The seller has preemptively obtained a clean Phase I environmental report dated April 2024. The due diligence package is thorough, including financial statements and sales reports for multiple tenants.
• Downtown Riverside Has Undergone a MAJOR Renaissance – Recent projects include: Riverside Convention Center Remodel ($36 million), Brand New Riverside Main Library ($40 million), Riverside Culinary Academy ($28 million), Fox Theater Event Center ($32 million), Cheech Center/Riverside Art Museum ($13 million), Imperial Hardware Lofts (89 units), The Mark Luxury Apartments (162 units), CIRCA on Mission (13 luxury townhomes), Mission Heritage Plaza (72 units + retail), Riverside Food Lab (14 unique restaurants), Several new hotels recently completed and under construction (500+ new rooms)
• Adjacent by Established Community Grocery Store – Maxi Foods has operated at the site for over 20 years. As the only grocery store located in Downtown Riverside, it has become vital to the area’s residents and draws significant traffic to the site.
• RAD Coffee Recently Added – With over 147,000 followers on Instagram and 4 locations across Southern California (and growing), RAD Coffee draws significant positive traffic to the center.
• Highly Visible & Easily Accessible – The subject property benefits from strong visibility along University Avenue, the primary thoroughfare serving Downtown Riverside, ultimately connecting the Downtown Area to UC Riverside.
• Recent Facelift – The entire shopping center, including the subject property, was recently remodeled with a new façade.

Documents

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