Investors Dig Deep for Retail
Investors are digging deeper than ever for OC's available retail properties, including smaller properties with strong shadow anchors—and owners are eager to position their properties for sale.
Avison Young principal Keith Kropfl and colleague Michael Ganz recently repped the buyer of the 30k SF 11100 Garden Grove Blvd in Garden Grove, Santa Ana-based Red Mountain Retail Group, as well as the seller, Bella Vista-based Gallinas Properties. Keith tells us the property was a challenge to lease because it wasn’t in a vacant, shell condition. "With Office Depot going from occupying the entire building to downsizing, it was important to help potential tenants envision the finished product," he explains.
During the escrow process, Keith and Michael negotiated a new 15.8k SF lease with Office Depot. Though downsizing, the retailer wanted to remain in the location, an infill space in a densely populated area. The remaining space, totaling 14k SF, was leased to East Seafood Buffet. Dating from 1996, the property is adjacent to Costco and across from Home Depot.
The market for retail-oriented lending in OC is also robust, PCCP's Michael Hoyt tells us. PCCP recently provided nearly $9M for the recapitalization of the 535k SF Buena Park Mall in Buena Park, on behalf of the property's owner, Coventry Real Estate Advisors. “We're seeing continued demand for this type of loan product, especially in deals where a fresh capital injection is required to execute the business plan.”
Buena Park Mall is within an infill location in north Orange County that enjoys a site adjacent to the Knott’s Berry Farm theme park. The property is 92% occupied, with major tenants that include DSW, John’s Incredible Pizza, Krikorian Theater, Ross Dress for Less and Olive Garden, among others.
