Lust for Retail
Investors want SoCal retail properties and they want them now, says Hanley Investment Group managing director Bill Asher, based in Irvine. (They're like kids in a candy store, except they're kids who want to buy the candy store.)
First of all, because everybody else wants retail, Bill explains (just like high school, except multimillion-dollar deals). Whether its single-tenant net leased, grocery anchored, unanchored strip, or value-add/reposition opportunities, demand for retail investments is at an all-time high from a wide range of buyers—from private investors to REITs—all seeking all retail segment product types at historically low interest rates.
Also, a lack of inventory continues to frustrate pent-up investor demand as record cap rates, sales, and values are a common occurrence, Bill tells us. The overall velocity might not be as rapid as at the last peak, but lower vacancy, sustainable and even increasing rental rates, along with retail tenant expansion, are fueling investor confidence. Recently Bill, along with Progressive Real Estate Partners’ Frank Vora, repped the sale of the 97k SF Montclair Town Center in Montclair, anchored by Dollar General and 24 Hour Fitness, for nearly $16M. Ophir Management Services’ Eric Treibatch repped the buyer.
