SRS Real Estate Partners Closes $5.95 Million Retail Property Sale in French Valley Marketplace

SRS Real Estate Partners has closed the $5.95 million sale of a newly constructed three-tenant retail building at French Valley Marketplace located at 35974 Winchester Road in Winchester, California. The 7,226-square-foot property features Panera Bread and Toro Sushi on long-term absolute triple-net leases, with one unit currently available for lease. This transaction represents the most recent sale in the strategic breakup of French Valley Marketplace, with only one additional pad remaining to be sold.

The sale was negotiated by SRS Capital Markets Senior Managing Principals Matthew Mousavi and Patrick Luther, along with Vice President Jack Cornell, who represented the Southern California-based private developer seller. The buyer was a La Jolla-based private investor utilizing a 1031 exchange, with the transaction achieving a 5.92% cap rate and including placement of new financing on the property. According to Mousavi, this marks the eleventh sale executed by SRS on behalf of the developer within this center, totaling more than $55 million in transaction value.

French Valley Marketplace has attracted significant investor interest due to its prime location within the high-growth Temecula submarket, which serves as the job center for southwest Riverside County. The area boasts strong industry clusters including biomedical, biotech, life science, technology, advanced manufacturing, tourism, and retail sectors. Temecula's business-friendly environment, high standard of living, educated workforce, competitive housing prices, and strategic location between Los Angeles, San Diego, and Orange counties contribute to its appeal for commercial investment.

Previous sales within the center have included major national tenants such as Grocery Outlet, EoS Fitness, Chipotle, 7-Eleven, McDonald's, and AutoZone. Cornell noted that the Panera lease was secured before construction was fully completed, demonstrating the strong demand for well-located retail properties in this expanding market. The transaction highlights the continued strength of retail investment in growing suburban markets with diverse economic bases and favorable demographic characteristics.