Sales  ·  Retail

Costco Pays $38M for Crossroads Marketplace in Southern California

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Wholesale giant Costco purchased a nearly 186,600-square-foot retail property in Southern California’s Inland Empire earlier this month, according to data provided by Vizzda.

LNR Partners, an affiliate of Starwood Property Trust, sold the property for $37.5 million, or $201 per square foot, for the multi-tenant site at 13251 Peyton Drive in Chino Hills. A Costco wholesale store sits in the same retail park across from the property.

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The property encompasses two buildings, constructed in 2000, on about 20.7 acres of land. Current tenants include Bed Bath & Beyond, with 30,049 square feet, Petsmart, with 18,875 square feet, and Dollar Tree, with 10,000 square feet. There are also five other retail spaces on the property, according to Vizzda. 

The sale is indicative of the Inland Empire’s buzzing retail market. According to a retail research report released by Colliers (CIGI) in July, the average monthly lease rates in the Inland Empire reached $1.78 per square foot in the second quarter of this year, an increase of 8 percent from the second quarter of 2022.

Vacancy rates in the Inland Empire dropped to 6.7 percent, a decrease of 10 basis points from the previous quarter. 

Nick Trombola can be reached at NTrombola@commercialobserver.com.