22311 Bear Valley Road
Apple Valley, CA 92308 ·
161,217 SF · Retail For Sale
Apple Valley Plaza
|Gross Leasable Area||161,217 SF||Commission Split||1.5%|
|Property Type||Retail||Cap Rate||11%|
|Property Sub-type||Specialty Center||Tenancy||Multiple|
|Property Use Type||Investment||Lot Size||16.44 AC|
|Listing ID: 16325849||Date Created: 07/21/2009||Last Updated: 07/21/2010|
Apple Valley Plaza (AVP) is a new, semi-completed REO community retail center located in the High Desert city of Apple Valley. It is located at the signalized corner of Bear Valley Road and Central Road. Bear Valley Road is one of two major east-west surface arterials within the High Desert cities; the other being Palmdale Road. AVP benefits from approximately 1,225 linear feet of visible street frontage along Bear Valley Road. Traversing on a northerly direction on Central Road provides access to join with Interstate 5, the major north-south artery on the west coast.
The center' s design is attractive and very visible along Bear Valley Road. the five parcels are in various stages of development. The parking lot is paved within the 17.5 acre parcel. Landscaping is well located in the center and along the main entrance into the center. Curbs, entrances and exits at the center are already completed. The center was well received as numerous tenants were submitting offers to lease at the center prior to the credit freeze. At one point, Apple Valley Unified School District was interested in the purchase of one of the buildings.
Ultra Star Cinemas, a newly-constructed, "A" rated, 14-screen, state-of-the-art digital megaplex movie theater, is the current anchor with operations at full scale. The current rent is $12.00 per square foot annually, which is below market rent for theaters in the Southern California area. The initial lease term is 20 years, which prevents periodic lease rollovers. The theater lease offers an impressive 30 percent rent increase commencing January 1, 2010 (per appraisal dated March 21, 2008). One thought for a seasoned investor would be to subdivide the theater parcel away from the entire center. This strategy provides an opportunity for the investor to sell the theater parcel first, complete the remaining construction development and lease up and then go to market. The 1,870-square foot vacant space in front of the theater was envisioned to be a restaurant use, which is the highest and best use given the amount of foot traffic traversing in and out of the theater. This space could command higher than market rent due to its visibility on Bear Valley Road and its vicinity to foot traffic.
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