L.A.-based shopping center owner Castle & Cooke secured a $140 million loan to refinance a retail power center serving the affluent Inland Empire area.
The loan, arranged by JLL Capital Markets through Deutsche Bank AG, is for Crossings at Corona, a Class A, 833,995-square-foot center at the northeast corner of I-15 and Cajalco Road in Corona, Calif. Located near the entrance to Hwy-91, the highway sees over 200,000 vehicles daily and serves the neighborhoods of Corona, Chino, and Riverside, according to JLL, which noted the center’s proximity to both employment hubs and residential areas. Corona is east of the greater Los Angeles metropolitan statistical area, which in 2023 saw average household income within a three-mile radius reaching $157,625 and 65 percent of households earning over $100,000 per year, according to data from JLL.
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We are thrilled at the continued rent growth and leasing velocity at Crossings since we completed the project in 2005,” Castle & Cooke’s president Gary Wong said. “Our legacy tenants and new demand from national credit tenants highlight the strength of the Corona market. Castle & Cooke looks forward to continuing its multi-decade commitment to the asset and the Inland Empire community.”
Crossings is a retail and entertainment destination shopping center that includes sub-anchors Marshall’s, Kohl’s, Ross, HomeGoods, Sportsman’s Warehouse and Burlington’s as its core fashion big box stores. It also has Target as a shadow anchor, a tenant anchor on an adjacent property not owned by Castle & Cooke. Other national retail and restaurant tenants offer shoppers a mix of retail and entertainment options.
“The large loan market continues to track retail’s comeback story,” said John Marshall, a managing director who is on JLL’s Debt Advisory team. “Castle & Cooke’s storied history, best-in-class management team, and the property’s fundamentals provided a compelling credit thesis for lenders.”
Crossings isn’t the only shopping center that has garnered the attention of investors in recent days. Last week, Capstone Advisors acquired the Beachwalk Shopping Center in San Diego County for $32.1 million. Beachwalk is located in the Solana Beach area, an affluent beach community on the Pacific Coast Highway where home values exceed $2 million.
A September report from JLL on Trends in U.S. Luxury Real Estate concluded that high-end luxury retail remains resilient despite economic uncertainty. Moreover, Class A malls have the lowest vacancies, with an average vacancy rate of 5.8 percent in the second quarter of 2024. Looking ahead, the JLL report cited a study from Bain & Co. that said Gen Z and Gen Y will account for more than 70 percent of global luxury spending by 2030.
Meanwhile, Gen Z shoppers have been driving the evolution of the luxury sector for years. And many have been the driving force for resale. Reflecting the growing interest in pre-loved luxury goods, Mytheresa earlier this year expanded its resale partnership with Vestiaire Collective to all customers, extending the service to beyond just VIPs in Europe, the U.K. and the U.S.
