LBG Real Estate has completed the sale of a prime, newly-redeveloped retail center here to a private investor based in Orange County.
The sale, brokered by Ed Hanley, Bill Asher and Eric Vu of Hanley Investment Group at a sale price of $18.55 million. The sale of the property was brokered in an off-market transaction.
Leslie Lundin of LBG told GlobeSt.com exclusively that the Huntington Beach property provided unique challenges and opportunities.
“Due to the infill nature of this location and difficulty in developing new retail properties in Huntington Beach, this acquisition provided a unique redevelopment and lease-up opportunity,” Lundin said. “This property represents some of the only available prime vacant space in this otherwise fully-occupied submarket. The space has been held off the market because of the ground lease that recently expired otherwise it would be fully leased and redeveloped.”
LBG is led by principals Douglas Beiswenger, David Goldman, and Lundin.
The property is prominently located on the hard southeast corner of Brookhurst Street and Adams Avenue (10026 Adams Avenue and 20002 – 20052 Brookhurst Street) and contains approximately 24,000 square feet of building area on 1.96 acres. The property is surrounded by many leading national retailers, which provides a strong consumer draw to the intersection. These include Target, Kohl’s, Ralphs, Stater Bros., Sprouts, CVS/pharmacy, Chase Bank, JoAnn’s, Wells Fargo, Starbucks, and many others.
LBG acquired the property from US Bank on February 17, 2015, and completed its renovation and re-tenanting of the property in 12 months. The redevelopment included the relocation of US Bank, whose space was redeveloped for PetSmart, updating the façade, designing a new sign program, maximizing the parking plan/restriping, and redeveloping/demising the shop buildings.
The property has been leased to PetSmart, US Bank, Phenix Salon, Tenet Healthcare, and Orangetheory Fitness, achieving 100% stabilization. LBG handled the leasing in-house during ownership of the property.
“The site offers exceptional opportunities for retailers seeking a high-visibility location in a prime Orange County market, said Goldman. “Not only are the storefronts themselves highly visible but the three monument/pylon signs surrounding the property ensure the best exposure possible to both of the primary arterial streets that comprise this premier intersection.”
“LBG’s redevelopment efforts resulted in the rare sale of a stabilized retail shopping center of this size and scope in central Orange County,” said Ed Hanley, president of Hanley Investment Group.
“Besides the Bella Terra mall and The Strand, this sale represents one of the largest non-grocery-anchored retail sales in the city of Huntington Beach in the last 10 years,” said Bill Asher, executive vice president at Hanley.