Avison Young brokers $5.8-million sale of Temecula Oaks office property in Temecula, CAJune 25, 2018
Corey Martin, a Principal of Avison Young and Managing Director of the firm’s Austin office, who was previously based in San Diego, and Senior Associate Matt Shaw, who is based in the company’s San Diego office, represented the seller, KPN Industrial, LLC, as well as the buyer, Spruce Grove, Inc. The transaction closed at a cap rate of 7.5%.
Built in 1985 and renovated in 2015, Temecula Oaks is situated on 2.58 acres at 28765 Single Oak Drive and is within Rancho California Business Park, one of the area’s most prestigious business locations. The multi-tenant asset is 93% occupied and features newly renovated common areas, extensive window lines, and mature landscaping. The property is located next to the future Home2 Suites by Hilton hotel, which is currently in the development stages.
“Temecula Oaks represents a great value-add success story,” comments Martin. “We originally represented the seller when it acquired the property in December 2014. During that escrow, we implemented an extensive capital-improvement program, increasing the occupancy level to 60% from 20%. Shortly after close of escrow, occupancy rose to 93%. Temecula Oaks continues to be a well-located asset producing consistent stabilized cash flow and is a great addition to our new buyer’s portfolio.”
Temecula Oaks, which includes 156 parking spaces, is well-located at the corner of Rancho California Road and Business Park Drive, offering easy access to the 15 Freeway and numerous retail and dining amenities.