California investor spends $7M for retail strip center

California-based real estate investor Jeff Bether on Sept. 14 bought the shopping center, near the intersection of Battlefield Road and Glenstone Avenue and home to Pier 1 Imports and Talbots, from Kansas City-based development group Glenstone Partners LP.

“Being cater-corner to the regional mall out there is a really good location,” said Bether, of Escondido, Calif., who discovered the property after deciding to diversify his portfolio with commercial properties outside of California.

Property manager Kevin Guffey, owner of Belle-based American Realty & Development LLC, said that Bether doesn’t plan any changes for Battlefield Square Shoppes, a 37,000-square-foot center on 3.2 acres at 3030–3120 S. Glenstone Ave. Anchor tenants, including EntertainMart, have long-term leases, said Guffey, who wouldn’t disclose lease rates.

Bether, who used a $5.37 million loan from Morgan Stanley, secured by Kansas City-based mortgage banking firm Q10 Triad Capital Advisors, said he isn’t seeking additional properties in the Springfield area.

Because this was an isolated deal, Springfield real estate broker Kirk Heyle doesn’t expect a market impact. Lately, Heyle said commercial property owners have had better luck leasing property than selling property because of a relatively high prime rate of 8.25 percent. However, he expects high-dollar real estate sales to pick up because the prime rate recently dropped to 7.75 percent.

Glenstone Partners LP built Battlefield Square Shoppes in 1994, according to Mike Johnson of Kansas City-based R.H. Johnson Real Estate Co. Johnson, who represented the seller, said Glenstone Partners sold the property because the property was in good shape and it was able to get a good return on its investment.

“It was a good time to sell, due to the low cap rates,” Johnson said.

Heyle explained capitalization rate as net operating income divided by the property’s value.

Glenstone Partners is 50-percent owned by Kansas City-based Owl Associates and includes minority investments by Drury University trustee and Springfield investor Ronald A. Neville and Walton Construction founder Gregory R. Walton.

Owl Associates also recently sold another property in southwest Springfield.

In March, Owl Associates sold the 7,000-square-foot strip center at 3305 S. Campbell Ave., adjacent to the South Oaks Centre Wal-Mart. Springfield-based CRW Properties Inc. purchased the five-tenant center, including Papa John’s Pizza and Smoothie King, for an undisclosed price.

“It’s on Campbell, which is high traffic, and you’re sitting right in front of a Wal-Mart Supercenter, which is even better,” said CRW Properties Executive Vice President Curtis Jared.[[In-content Ad]]