A retail investment opportunity has hit the market in the San Bernardino County town of Hesperia. Faris Lee Investments’ marketing brochure shows the shopping mall known as Hesperia Town Center spans a total of 58,894 square feet. The retail asset is located on close to six acres of land at 15717-15787 Main St. The offering price is listed at $14.145 million, or approximately $240 per square foot. Public records show the current owner is Michael Development Company.
The marketing efforts for the property is led by Faris Lee Investments’ Managing Principal Shaun Riley.
Hesperia Town Center is a grocery-anchored shopping center originally built in 1983. The current anchor is Stater Bros and two co-anchors listed as Dollar Tree and dd’s Discounts. The marketing brochure shows the current anchor space accounts for 31,053 square feet with an additional 27,841 square feet of shop and pad space available. The shopping center currently has a cap rate of five percent and a net operating profit of over $706,000 per year.
The offering also presents a potentially growing income stream with annual rental increases on 82 percent of the shop space. Faris Lee believes potential investors could unlock additional value by bringing existing rents to current market levels or by utilizing the vacant outparcel land for ground leasing or development. With the asset encompassing five separate parcels, there is also an opportunity to sell off individual parcels for profit, allowing for flexibility in optimizing the investment as market conditions evolve.
Hesperia’s Town Center location along Main Street sees 43,636 vehicles per day and is positioned to capture the trade area’s increasing foot traffic. Faris Lee states that Hesperia is one of the fastest-growing markets in Southern California, with its industrial and logistics sectors driving economic expansion. Supporting the area’s growth, its industrial base and income demographics, including an average household income of $70,862, are over 12 million square feet of industrial property entitlements that are in progress in Hesperia. The population has grown by 50 percent over the past two decades and an additional 16,000 housing units are currently in the planning or construction phases.
The region will also benefit from the Brightline West high-speed electric rail project, which is set to connect Las Vegas to Southern California by 2028 with a station planned in Hesperia/Victorville. This rail line is expected to bring an estimated 9 million passengers annually, further driving economic growth and consumer traffic, according to the brochure
