Hunting the Elusive Net Lease Big Box
Spirit Realty Capital recently snapped up a 6.5-acre Fountain Valley center occupied by a single retailer for nearly $26M. Colliers International SVP Eric Carlton tells us OC is one of the most desired retail markets in the country, making it increasingly hard to find buys similar to the Fountain Valley property occupied by Curacao, especially at that size. He adds that's true in LA and San Diego counties as well. "With such high barriers to entry and very low turnover, cap rates remain compressed and retail assets continue to command high prices," he explains.
Arizona-based Spirit Realty acquired not only the 103k SF Curacao department store on the site at 16111 Harbor Blvd, but also an income-producing cell tower on the property. Eric says interest was high for a number of reasons, including that Harbor Blvd is one of the most heavily trafficked thoroughfares in OC. Eric also says that as a successful retailer catering to the Hispanic consumer, Curacao added greatly to the appeal of the property. Along with colleagues Michelle Schierberl, Jereme Snyder and Donald Ellis, Eric repped the seller in the deal, Red Mountain Asset Fund II.
