SRS Real Estate Partners Closes $5.95 Million Retail Sale in Temecula Market
SRS Real Estate Partners' $5.95 million sale of a retail property in French Valley Marketplace highlights strong investor demand in the growing Temecula submarket and completes a strategic breakup of the shopping center that has generated over $55 million in total sales.
SRS Real Estate Partners has closed the $5.95 million sale of a newly constructed three-tenant retail building at French Valley Marketplace located at 35974 Winchester Road in Winchester, California. The 7,226-square-foot property features Panera Bread and Toro Sushi on long-term absolute triple-net leases, with one unit currently available for lease.
The transaction represents the latest sale in the strategic breakup of French Valley Marketplace, with only one pad remaining in the disposition strategy. According to SRS Capital Markets Senior Managing Principal Matthew Mousavi, this marks the 11th sale executed by SRS on behalf of the seller/developer within the shopping center, totaling more than $55 million in transaction value. Previous sales at the center have included major national tenants such as Grocery Outlet, EoS Fitness, Chipotle, 7-Eleven, McDonald's, and AutoZone.
The deal was structured with the Panera lease already in place before construction was fully completed, demonstrating the strong pre-leasing demand for quality retail space in this market. The property achieved a capitalization rate of 5.92%, and a new loan was placed on the asset following the sale. The Southern California-based private developer was represented by SRS Capital Markets Senior Managing Principals Matthew Mousavi and Patrick Luther, along with Vice President Jack Cornell. The buyer was a La Jolla-based private investor utilizing a 1031 exchange strategy.
The French Valley Marketplace's strong performance reflects the broader economic strength of the Temecula submarket, which serves as the job center for southwest Riverside County. The area has developed strong industry clusters in biomedical and biotechnical manufacturing, technology, advanced manufacturing, tourism, and retail. Temecula's business-friendly atmosphere, high standard of living, well-educated workforce, competitive housing prices, and strategic location between Los Angeles, San Diego, and Orange counties have made it an attractive destination for corporate expansion and investment.
According to SRS Capital Markets Vice President Jack Cornell, the demand for well-located retail properties in high-growth markets like Temecula continues to attract significant investor interest and command strong pricing. The transaction is part of SRS's broader national activity, with the firm having completed more than $1.5 billion in deal volume across more than 400 transactions this year alone. For more information about SRS Real Estate Partners, visit https://srsre.com.