Moreno Valley Mall
Moreno Valley, California
Previously owned by a REIT, this property was in a state of severe decline for several years. REIT turned over the property to the bank at the expiration of the loan. SREG was then given the task of stabilizing the asset prior to a sale.
Transformation By The Numbers
75.1%
At Takeover
93.8%
$240
At Takeover
$433
$5.1M
At Takeover
$8.01M
Occupancy
%
Increase
Sales PSF
%
Increase
NOI
%
Increase
Occupancy
%
Increase
At Takover – 75.1%
At Disposition – 93.8%
Sales PSF
%
Increase
At Takover – $240
At Disposition – $433
NOI
%
Increase
At Takover – $5.1M
At Disposition – $8.01M
Transformation Through Leasing
SREG completed a 43,700 SF lease on the second floor of Moreno Valley Mall, that was vacant since 2007. The space was very difficult to lease as it was located on the upper level of the mall, with no grade level access or parking. Round 1 is a family amusement and entertainment venue similar to Dave & Busters, featuring bowling, arcade games, billiards, karaoke, and much more.
Converted a 20,600 SF area of long-term vacant specialty shops to a long-term permanent deal for a state-of-the-art fitness center.
Converted a national tenant from a one-story 6,800 SF space to a two-story 20,000 SF area.
Transformation Highlights
Permanent Leases Completed
Completed 30 permanent leases with terms of 7 years or longer, totaling 146,000 SF.
Permanent Leases Renewals
Completed 56 permanent lease renewals at the property from 2014 to 2016.
Leasing Highlights
- Converting 20,000 SF of long-term vacancy to long-term permanent tenant, Crunch Fitness, on the second level with no exterior entrance.
- Completing a 43,000 SF entertainment venue, Round One, (2nd in the nation) on the second level of the Shopping Center with no direct exterior access.
- Expanding Forever 21 in the first ever two-level Forever 21, occupying 21,558 square feet.
Sample Mix of New National Tenant Deals by SREG:
Increased Small Shop sales to $433/SF from $240/SF
Increased NOI to $8.01 million from $5.1 million
Increased
Occupancy by 24.9%
Increased Specialty Income by 81.5%
Bid contracts and managed construction on $4.4 million of Capital Projects, including roof replacements, HVAC/Central Plant Replacements, parking lot repairs, skylight repairs as well as upgrading the lighting package at the mall to LED, creating an equitable ROI.
Successfully reduced city-required police contract, which had been in place since mall opening, saving annually $130K.
