Puente Hills Retail Center Sold
The Plaza at Puente Hills, a 14-acre shopping center adjacent to the Puente Hills Mall in the City of Industry, Calif., has been sold for $44 million, reported Irvine, Calif.–based real estate broker Faris Lee Investments.
The sale, made to the JSL Plaza at Puente Hills partnership, actually covers a 178,000-square-foot parcel on the property, which is part of an eight-parcel break-up strategy used to maximize investment returns, said Faris Lee executives. The investment group SCI Real Estate Investments LLC bought the property in 2005.
“This transaction is a prime example of how a break-up strategy can be profitable even after a resale. The key to success is to structure the original break-up strategy properly with good operating association documentation,” said Richard Walter, president of Faris Lee. “The seller, SCI, made a strong return on its investment over a short period of time. The new buyer recognized the intrinsic value of the property, which was sold below replacement cost and includes tenants currently paying below-market rents.”
MacLellan said the center is located in a trade area with high barriers to entry and with no available large sites for development, making it an attractive investment.
Built in 1988, The Plaza at Puente Hills totals 477,000 square feet. The property is located along Gale Avenue and is visible on the Pomona Freeway, with traffic counts of 218,000 cars per day. —Robert McAllister
