Late last week RREEF Property Trust, a daily NAV REIT, closed on a retail building in Chula Vista, California. RREEF Property Trust purchased the property from VLD Sweetwater L.P. for almost $21.9 million, exclusive of closing costs.
RREEF Property Trust, which invests in real estate, traded real estate securities, real estate-related debt, and cash equivalents, purchased the property with existing capital and by borrowing $19.1 million under its credit facility with Regions Bank. $7.1 million of that amount is from existing borrowing capacity on previously acquired properties, while $12 million is specific to the new property.
Built in 1986, the property is a one-story building located within Terra Nova Plaza at 390 and 394 East H Street. Chula Vista is just 7.5 miles from downtown San Diego and 11 miles from San Diego International Airport and has access to regional transportation systems.
The property is 100% leased to two tenants; Sports Authority and Bed Bath & Beyond. At the time of closing, the property had an average effective annual rental per square foot rate of $13.22.
“Shops at Terra Nova Plaza generates a strong cash yield for investors and is located in a submarket with high retail occupancy,” commented Todd Henderson, Chairman of the Board of RREEF Property Trust and Head of Real Estate, Americas, at Deutsche Asset & Wealth Management. “Further adding to the attractiveness is the market’s high barriers to entry with very limited retail sites available for future development.”
Launched in 2012, RREEF Property Trust is sponsored and advised by RREEF America. RREEF Property Trust recently obtained NASDAQ ticker symbols for its Class A and Class B common stock, allowing investors to view daily pricing, as well as corporate data, through NASDAQ Mutual Fund Quotation Service and other vendors.