HFF closes $49 million sale of Inland Empire, California retail power center

 LOS ANGELES, CA - February 5, 2014 – HFF announced today that it has closed the $49 million sale of Vernola Marketplace, a retail power center located in Jurupa Valley, California. HFF marketed the property on behalf of the seller, a joint venture between Rockwood Capital, Equity One, Inc. and Vestar. Merlone Geier Partners purchased the property, which included the assumption of existing debt. Vernola Marketplace is located at 6205 Pats Ranch Road in Jurupa Valley, adjacent to Interstate 15 with exposure to more than 314,000 cars per day. The 22.2-acre site is situated 45 miles east of downtown Los Angeles, 20 miles from Orange County, and eight miles from the LA/Ontario International Airport. Completed in 2007, the 210,963-square-foot property is 84 percent leased to tenants including Ross Dress for Less, Bed Bath and Beyond, Michael’s, Petco, BevMo!, Denny’s, Five Guys Burgers and Fries, and Jamba Juice. The shopping center also features a 172,000-square-foot Lowe’s that is not part of this transaction. The HFF team representing the seller was led by managing director Bryan Ley, director John Crump and senior managing director Michael Ross. “Vernola Marketplace represented another significant retail trade in the Inland Empire market within the past 12 months. The asset drew strong interest from both institutional and regional real estate investors and represented an excellent acquisition opportunity in a secondary market of Southern California,” said Ley. “The center proved especially appealing due to a terrific line-up of national tenants, continued rental growth attributed to growing residential demand, and offered further upside in the backfilling of the vacant junior-anchor box.” Ley continued, “The HFF investment sales team has completed more than $374 million in retail sales in the Inland Empire in the past 36 months and this sale further exemplified the desire of large institutions for top-tier, well-located assets in this region.” Rockwood Capital, LLC is a real estate investment firm that provides equity capital combined with real estate expertise for repositioning, recapitalization, development and redevelopment of retail, hotel, residential, office and research and development space in key markets throughout the United States.  Since 1990, Rockwood and its principals have invested on behalf of their clients approximately $15.4 billion of real estate through nine value-add vehicles and three separate accounts.  Today, Rockwood is an 82-person real estate investment firm with offices in White Plains, NY; San Francisco, CA; and Los Angeles, CA, and manages a portfolio of approximately $3 billion of net equity value in approximately $7.6 billion of gross real estate value.  Rockwood’s investors include public and private pension funds, endowments, foundations, insurance companies, fund of funds, high-net-worth individuals and family offices.  As of September 30, 2013, Equity One’s consolidated property portfolio comprised 144 properties, including 121 retail properties and seven non-retail properties totaling approximately 15.3 million square feet of gross leasable area, or GLA, 10 development or redevelopment properties with approximately 1.7 million square feet of GLA upon completion, and six land parcels. As of September 30, 2013, Equity One reported their consolidated shopping center portfolio was 92.4 percent leased and included national, regional and local tenants. Additionally, Equity One has joint venture interests in 18 retail properties and two office buildings totaling approximately 3.4 million square feet of GLA. For more information, please access the Equity One website at www.equityone.net. As one of the leading privately held real estate companies in the western United States, Vestar specializes in the acquisition, management, and development of commercial real estate, including entertainment-retail complexes, power and lifestyle centers, and neighborhood centers of varying size and scale that serve as community shopping destinations with a unique sense of place. With more than 21 million square feet under management in the western U.S., Vestar is acknowledged by both institutional and private-client investors as an industry leader in the ownership and management of major shopping centers and other retail properties. For more information, please visit www.vestar.com. Merlone Geier Partners is a private real estate investment company focused on the acquisition, development and redevelopment of retail and retail-driven mixed-use properties on the West Coast. Primarily focused on community and neighborhood shopping centers, Merlone Geier Partners and their predecessor, M&H Realty Partners, have been actively investing in West Coast retail property since 1993, acquiring to date 127 West Coast properties representing more than 20.5 million square feet. Merlone Geier, co-managed by Peter J. Merlone and Bradley A. Geier, has raised more than $3.2 billion of discretionary institutional equity capital during the past 21 years. They recently closed their 11th fund, Merlone Geier Partners XI, L.P., which has more than $900 million in capital commitments. HFF (Holliday Fenoglio Fowler, L.P.) and HFFS (HFF Securities L.P.) are owned by HFF, Inc. (NYSE: HF).  HFF operates out of 22 offices nationwide and is a leading provider of commercial real estate and capital markets services to the U.S. commercial real estate industry. HFF together with its affiliate HFFS offer clients a fully integrated national capital markets platform including debt placement, investment sales, equity placement, advisory services, loan sales and commercial loan servicing. For more information please visit www.hfflp.com or follow HFF on Twitter at www.twitter.com/hff. Holliday Fenoglio Fowler, L.P., acting by and through Holliday GP Corp., a real estate broker licensed with the California Department of Real Estate, License Number 01385740.

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