MCB Real Estate Teams Up with DRA Advisors for $65M Acquisition of Falcon Ridge Town Center

A partnership between MCB Real Estate and a fund managed by DRA Advisors recently purchased Falcon Ridge Town Center, a large retail center in Fontana, California, for $64.7 million. This marks the first transaction for the two companies as partners. Located at Summit Avenue, the 273,424-square-foot property was fully leased at the time of the sale. The center's previous owner was SITE Centers, as reported by CommercialEdge.

Features and Tenants of Falcon Ridge

Built in 2005 and renovated in 2023, Falcon Ridge is considered a key retail hub in the region. The center spans 25.1 acres and is anchored by Stater Bros. Markets, a regional grocery chain, with Target serving as a shadow anchor. Other well-known tenants include ULTA Beauty, Michaels, Dollar Tree, and Ross Dress For Less. The center also offers several amenities, such as 24 newly installed Tesla charging stations.

Prime Location and Local Demographics

Falcon Ridge is situated near Interstate 15, benefiting from high traffic volumes, with an estimated 148,000 vehicles passing through the area daily. The retail center serves a local population of over 250,000 residents within a 5-mile radius, where average household incomes are reported to be around $130,000.

Future Plans for Falcon Ridge

DRA Advisors hinted at plans to adopt a value-add strategy for Falcon Ridge Town Center, but further details have not been disclosed. The company's focus seems to be on enhancing the center’s appeal and potentially increasing its value through strategic improvements.

Retail Market Trends in the Inland Empire

The Inland Empire’s retail market remained stable, with an overall availability rate of 6.4 percent by the end of the second quarter, according to CBRE. Retailer confidence in the area is partly driven by the growing local workforce, spurred by industrial and distribution sector expansions. The region saw a total investment volume of $115.2 million in the second quarter, a $24.3 million increase from the previous quarter. Notable transactions include Albanese Cormier Holdings' $46.6 million purchase of the Rancho Las Palmas Shopping Center in Rancho Mirage, California.