SRS Real Estate Partners is pleased to announce it has completed the $9.8 million sale of a 30,057-square-foot (sf) property occupied by Fitness 19 with three in-line shops. The property is located within Butterfield Station, an 8.85-acre, 70,455-square-foot retail center anchored by Smart & Final that is situated along Temecula Parkway/State Highway 79 in Temecula, Calif. This latest transaction completes a four-parcel break-up strategy of the property totaling $26.46 million which was led by the SRS Capital Markets team of Joe Chichester and John Redfield on behalf of the private seller in order to maximize overall value.
“We were pleased to advise our client on the $19.7 million acquisition of Butterfield Station in early 2022,” said Chichester, SRS Capital Markets Vice President. “Following the purchase, SRS created a strategic business plan focused on re-tenanting and enhancing the long-term stability of the center. Our team secured Smart & Final to backfill a former Best Buy space and curated a stronger tenant mix, which drove annual customer traffic to more than 1.1 million visits.”
Redfield, SRS Senior Vice President & Principal, added, “Once the property was stabilized, we recommended a break-up strategy as opposed to selling the center as a whole. With higher rates in the capital markets and greater ability to locate premium single-tenant private buyers at smaller price points, the sum of the parts was greater than the whole. With just over a 3.5-year hold period, SRS’ proactive leasing guidance and disposition strategy increased the asset’s value by $6.8 million, enabling the ownership to achieve record-setting results with the Smart & Final sale – with the lowest cap rate over the trailing 24 months for this tenant — and maximize investor returns.”
The Fitness 19 property is situated on 4.1 acres and is located at 32909 Temecula Parkway. Each of the four assets was sold to separate private investors and had an average cap rate of 6.11%.
The three other parcels in the break-up occurred in late 2024 and include:
- Smart & Final, a 30,038-square-foot property situated on 3.15 acres which sold for 11.5 million
- Multi-tenant strip center including Subway, a 5,360-square-foot property situated on .85 acres which sold for $2.275 million
- Wells Fargo, a 5,000-square-foot property situated on .75 acres which sold for $2.45 million
About SRS Real Estate Partners
Founded in 1986, SRS Real Estate Partners is building upon its retail foundation to provide extensive commercial real estate solutions to tenants, owners, and investors. Headquartered in Dallas, with 29 offices in the U.S., SRS has grown into one of the industry’s most influential and respected leaders. Our commitment to excellence is strengthened by our Guarantee of Value and our success is measured in the achievement of our clients’ objectives, satisfaction, and trust. For more information, please visit srsre.com.