IRVINE, CA— With historically low interest rates and rising values, private and institutional capital are competing for quality retail assets. Hanley Investment Group has closed 20 deals within the last 30 days, totaling $150 million.
“We anticipate the demand to acquire well-located grocery/drug-anchored shopping centers, single-tenant credit retail and high-profile retail properties in established commercial business districts will continue to increase through 2014 as supply tightens and the debt market remains active,” Edward Hanley president of Irvine-based HIG, tells GlobeSt.com exclusively.
HIG has negotiated the sale of three prominent shopping centers in Southern California. The first was the sale of Imperial Promenade, a 214,200-square-foot leasehold-interest community center anchored by Target and Big Lots and located at 1000-1222 W. Imperial Hwy. in La Habra, CA. HIG represented both the buyer, Zurich Insurance Group, an institutional investor based in New York City, and seller, Arnel & Affiliates of Costa Mesa, CA, in the sale. Imperial Promenade, built in 2008, was 100% occupied at the time of the sale. The purchase price was not disclosed.
HIG also negotiated the sale of Plaza de Hacienda, a 149,115-square-foot neighborhood shopping center, anchored by Albertsons and CVS/pharmacy and located at 42065 and 42175 Washington St. in Palm Desert, CA. HIG represented the seller, Orange County-based Kraemer Land Co., while Luko Management represented the buyer, a private investor. The center was built in 1993, underwent a multimillion-dollar renovation in 2009 and was 89% occupied at the time of the sale. The purchase price was not disclosed.
The third property sold was Seco Canyon Village, a 42,134-square-foot shopping center anchored by CVS/pharmacy and located on the southwest corner of Seco Canyon Rd. and Copperhill Dr. in Santa Clarita. HIG represented the seller, HA Seco SWAC LLC, based in Newport Beach, CA. The buyer was a private investor based in Los Angeles that acquired the center through an all-cash 1031 exchange. The shopping center was built in 2005 and was 86% occupied at the time f the sale. The purchase price was not disclosed.
“These three sales are a good representation of the demand we are seeing from both our institutional and private-capital clients,” says Hanley. “I expect that the number of retail properties sold this year will set new industry records. Property owners are taking advantage of the seemingly insatiable appetite of private capital, institutions and foreign-capital buyers to acquire retail properties.”
As GlobeSt.com reported last week, HIG executed the sale of two single-tenant triple-net-leased bank properties for more than $12.5 million: a Wells Fargo Bank in Culver City, CA, and a Chase Bank in Laguna Hills, CA.
Visit Hanley Investment Group on October 1-2 at ICSC Western Division Conference in San Diego at Booth #1521.