Investment in grocery-anchored shopping centers is a significant component of the retail market, as evidenced by the recent purchase of a 273,000-square-foot property in Southern California's Inland Empire. Baltimore-based MCB Real Estate, in partnership with a fund managed by DRA Advisors, acquired Falcon Ridge Town Center for $64.7 million. This transaction marks the first successful joint venture between the two entities. The seller of the property is an entity linked to Site Centers, a real estate investment trust based in Beachwood, Ohio, according to property records.

    The area around Fontana, California is experiencing rapid growth, attracting more affluent residents each year. Falcon Ridge Town Center is located at the heart of this growth, offering a comprehensive shopping experience unmatched in the region. Built in 2005 and renovated in 2023, the fully leased plaza is anchored by regional grocery chain Stater Bros. Markets and shadow-anchored by Target. Other tenants include Ulta Beauty, Michaels, Dollar Tree, and Ross Dress for Less. The plaza is easily accessible, situated just off the Beech Avenue exit of Interstate 15, approximately 50 miles east of Downtown Los Angeles.

    P. David Bramble, MCB managing partner and co-founder, expressed his enthusiasm for the acquisition, stating, "The area in and around Fontana is rapidly growing with more affluent residents moving in every year, and Falcon Ridge sits right in the middle of that growth, offering an all-encompassing shopping experience that’s unmatched in the region."

    Brett Gottlieb, DRA Advisors' managing director, emphasized the alignment of the Falcon Ridge Town Center investment with DRA's retail strategy of acquiring high-quality open-air shopping centers with value-add opportunities in collaboration with top retail operators across the U.S.

    While grocery-anchored retail centers remain a stable investment, their counterparts without grocery stores are facing challenges. The Puente Hills Mall in California's City of Industry in L.A. County, approximately 40 miles west of Fontana, is a prime example. Despite its past fame as a filming location for the original "Back to the Future" movie, the mall is now a ghost town, with many tenants departing before, during, and after the COVID-19 pandemic.

    A joint venture between RCB Equities and Real Estate Development Associates secured a $115 million acquisition loan for the more than 1 million-square-foot mall in August as a redevelopment project rather than a simple ownership transfer or renovation. The specifics on the JV's redevelopment plans are currently unclear.

    For more information, please contact Nick Trombola at [email protected].