murrieta crossings

Opportunistic Stabilized Case Study (active)

Murrieta Crossings

The Opportunity

• CIRE purchased the newly constructed 129,500 SF multi-tenant REO asset through a lender facilitated receivership sale significantly below replacement cost in comparison to other newly constructed retail assets in Southern California

• CIRE will immediately benefit from high project occupancy (approximately 90% at acquisition) and steady cash flows with minimal near term rollover

• The property is located adjacent to I-215 Freeway with clear line of site for the approximately 115,000 vehicles traveling past per day

Value-Add Strategy

• Capitalize on the operational inefficiencies typical to most receivership/REO sale situations by completing an exhaustive audit and overhaul of property level operations to maximize efficiencies and reduce costs

• Basis/risk reduction strategy includes the potential partial sale of a parceled portion of the center, resulting in a significantly reduced effective basis and significantly increased cap rate to adjusted basis

• Immediate implementation of a local/regional rebranding campaign to reintroduce the asset and new ownership to the marketplace

Property Description

Property Type:
Multi-tenant Retail

Sub-Market:
Murrieta, California

Number of Bldgs:
Two (2)

SF / Acres:
129,500 SF / 11.57 acres

Year Built:
2006

Current Occupancy:
95%