Hanley Investment Group Closes Four California Shopping Center Sales at Record Prices Totaling $46,790,000

IRVINE, CALIF. - Hanley Investment Group Real Estate Advisors, one of the most dominant retail investment groups in Southern California and a market leader in the sale of retail properties, announced today the sales of four prominent shopping centers in California for a total consideration of $46,790,000.

Edward B. Hanley of Hanley Investment Group represented the buyer and seller in the sale of a Target anchored community shopping center in Rancho Cordova, Calif. The purchase price was $26,500,000.

The 150,158-square-foot community shopping center, known as Rancho Cordova Town Center, is located at 10801-10937 Olson Drive in Rancho Cordova. Anchored by Target (not a part of the sale), Rancho Cordova Town Center is located adjacent to US Highway 50 and easily accessible from Folsom Boulevard, the major retail/commercial thoroughfare in Rancho Cordova. Built in 1988, the property is situated on 12.20 acres and consists of the following notable tenants: Michaels, Pier One Imports, Anna’s Linens, Fallas Paredes and Citiwear. The property was 90% occupied at the time of sale.

"Rancho Cordova Town Center is a very unique investment opportunity with excellent upside potential," said Edward Hanley, president of Hanley Investment Group. “The property is unique because it is co-anchored by Target, one of the leading retailers in the world, which provides the property with an outstanding customer draw. The upside potential exists in various areas from leasing up the current vacant shop space to a complete redevelopment of the property. It was a challenging transaction because there were a lot of moving parts between not only the seller and buyer, but also Target. In the end, we were able to successfully accommodate all parties throughout the transaction process and help achieve their investment objectives."

The buyer was Pacific Castle based in Irvine, Calif. The seller, also from Irvine, was Passco Companies, LLC.

Moving south to Orange County, Edward Hanley represented the buyer in the sale of a multi-tenant shopping center in Mission Viejo, Calif. The purchase price was $12,500,000, which represented a 6% cap rate.

The 37,615-square-foot multi-tenant shopping center, known as Marguerite Plaza, is located at 24011-24031 Marguerite Parkway in Mission Viejo. Built in 1973, the property is situated on 3.5 acres and located easily accessible to Interstate 5 Freeway. Marguerite Plaza consists of 10 tenants including Total Woman Health & Fitness Spa, Blockbuster Video, Leslie's Pool Supply, and Little Caesar's Pizza. The property was 100% occupied at the time of sale.

"There was a lot of competition for the acquisition of this property, due to the future upside potential the property possessed as well as the attractive south Orange County location,” noted Hanley. “The seller got comfortable very quickly with the buyer’s track record, including owning and managing multiple properties in the immediate area. The deal was solidified with the combination of a very strong initial offer, combined with the buyer’s resume.”

The buyer was Cadence Capital Investments based in Greenwood Village, Colo. Dan Parker of Parker & Associates in Laguna Hills, Calif. and Don Smith of D.W.A. Smith & Company in Newport Beach, Calif. represented the seller, Viejo Properties, LLC of San Mateo, Calif.

In another Orange County transaction, Hanley and Eric P. Wohl represented the seller in the sale of a multi-tenant strip center in Fountain Valley, Calif. The purchase price was $4,000,000, which represented one of the highest prices per square foot in the area at $793 per square foot and one of the lowest cap rates at 4.95%.

The 5,042-square-foot multi-tenant strip center, known as Magnolia Plaza, is located at the high profile intersection of Warner Avenue and Magnolia Street, 9025 Warner Avenue in Fountain Valley. Situated a half mile from the 405 Freeway, easily accessible from both the Magnolia Street and Warner Avenue exits, the property is situated on 0.52 acres and consists of five tenants including Starbucks, GameStop and Verizon Wireless. The property was built in 1985, rehabbed in 2002, and was 100% occupied at the time of sale.

“This was a rare opportunity to acquire a multi-tenant strip center anchored by Starbucks in a prime Orange County location,” said Eric Wohl, vice president at Hanley Investment Group. “The buyer was the ideal candidate for the property, as he owned similar type property in the Orange County area.”

“We were able to successfully close the transaction after handling several challenges including a property condition issue, plus obtain a record breaking sale price that exceeded the seller’s expectations,” Hanley noted.

The buyer, a private investor based in Playa del Rey, Calif. was represented by Steve Lund of Marketing Brokers in Huntington Beach, Calif. The seller was a private investor from Newport Beach, Calif.

In the last of the four transactions, Jeremy S. McChesney and Kevin T. Fryman represented the buyer and seller in the sale of a multi-tenant retail/office center in Garden Grove, Calif. The purchase price was $3,790,000, which represented one of the lowest cap rates in the area at 4.26%.

The 19,197-square-foot retail/office center, known as Zitny Plaza, is located at 10562-10602 Garden Grove Boulevard in Garden Grove. Easily accessible from the 22 Freeway the property is situated on 1.50 acres and consists of 16 local retail and office tenants servicing the surrounding area. The property, which was built in 1960 and remodeled in 1989, was 100% occupied at the time of sale.

“This was an extraordinary value-add investment opportunity in a dense in-fill location,” said Jeremy McChesney, senior associate at Hanley Investment Group. “The property is situated in a highly desirable area of Garden Grove. The buyer has an outstanding opportunity to increase below market rents for a property positioned on a major east/west thoroughfare in central Orange County.”

“Demand for retail remains very strong in Orange County, especially for any type of retail asset with a value-add component,” added Kevin Fryman, senior associate at Hanley Investment Group. “The buyer paid a premium for the property, which resulted in a record low cap rate that exceeded the seller’s expectations.”

The buyer was a private investor based in Huntington Beach. The seller was a private investor from Garden Grove.

Built on a solid foundation of performance, integrity and dedication, Hanley Investment Group Real Estate Advisors is a boutique retail investment advisory firm with a $1 billion transaction track record that is comprised of innovative specialists delivering unparalleled service and superior results that consistently exceed client expectations. Hanley Investment Group’s expertise, commitment and unwavering focus of putting the client’s needs first have continued to set the company apart in the industry.

Hanley Investment Group works closely with individual investors, developers, and institutional property owners in every facet of the transaction to insure that the highest value is achieved. Clients rely on Hanley Investment Group to be the most knowledgeable and trusted source for valuation services, market information and retail property acquisitions and dispositions. For more information, visit the Company’s website at www.hanleyinvestment.com or call (949) 585-7610.

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