October 11, 2018
Temescal Village is a 102,976-square-foot grocery anchored neighborhood shopping center in Corona, CA, owned by Passco Companies. Situated at one of the market’s busiest intersections, the 1983-built property has been modernized and is leasing up quickly. We asked Passco’s Vice President of Commercial Investments, Todd Siegel, and Nékter Juice Bar’s Co-Founder and Chief Executive, Steve Schulze (pictured above), to share their insights on what was behind the renovation and what makes the center attractive for tenants in our latest 3 CRE Q&A.
Q: Why did Passco buy this center in Corona, and what have you done to attract new tenants?
A Todd Siegel: Temescal Village is our newest retail property that is a busy grocery-anchored center in Corona. It is anchored by leading grocer in Inland Empire, Stater Bros. When we acquired the center, it was the first time the property was on the market. The developer/owner who built it had held it for a long time. We purchased it as a value add opportunity. It had been untouched since it was developed in the 1980s. We completed a facelift and upgraded the tenant mix. We were successful in executing that strategy.
The upgrades included a facade renovation to give it a more modern appeal, and we balanced those improvements with a drought tolerant landscape that was more vibrant and up-to-date with seating areas. The result is a warm and relevant center that appeals to today’s shopper and tenants.
Q: What attracted Nékter to Temescal Village and the City of Corona?
A Steve Schulze: For our brand, in general, we look for aspirational, education based markets with density. The Inland Empire has been a strong market for us. When we look at a center, we look to see how dynamic it is as well as co-tenancy. Landlords of older centers are making the right decision to revitalize the area and center to bring in more traffic. That’s the type of landlord we like, and the center we want to go in. A dated center will be dramatically impacted when a new center opens. Another sign we look for is to see if inline grocery, coffee or fitness users are leaving a center. That will drive profits down.
When a landlord updates a center, it becomes more relevant and enhances its presence in the community. Those are some positives we look for.
The most important aspect is to make a center relevant again. If a center was built in the 1970s or 1980s, it can get run down and not be attractive. It likely won’t have the right tenant mix to drive more traffic or neighborhood buzz. The product mix must drive people to the center. We look for a balance with grocers, pharmacies, a Starbucks or fitness brands, such as Orangetheory Fitness. If you put us by a health or daily needs user, we will do that lease instantaneously. We also like being an outlier in a fast casual center, where we can be known as the healthy option next to users not known as health brands. They all will attract traffic, and we’ll give consumers an outlier option, and that makes the center attractive for us.
Q: How important is it to find the right tenant mix?
A Todd Siegel: In addition to Nékter, we are working with a nationally-branded coffee tenant and a build your own pizza tenant, as well as other food and retail tenants to enhance the tenant mix at Temescal Village Plaza. For consumers and tenants, a desirable and relevant merchandising mix is an essential ingredient to a successful center. Both consumers and tenants enjoy the synergy and co-tenancy of today’s relevant food and retail concepts.
For comments, questions or concerns, please contact Dennis Kaiser