Hanley Investment Group Real Estate Advisors, a nationally recognized real estate brokerage and advisory firm specializing in retail property sales, announced today that the firm arranged the sale of a two-story, 24,986-square-foot retail and medical building within the Aliso Viejo Town Center, a 380,000-square-foot community center in Aliso Viejo, California. The center is anchored by Ralphs, CVS Pharmacy, Staples, TJ Maxx, HomeGoods, PetSmart, and Regal Cinemas. The sale price was $9.4 million.
Hanley Investment Group’s Vice President Sean Cox and Executive Vice President Kevin Fryman represented the seller, a private investor based in San Francisco, California. The buyer, a private investor from Irvine, California, was represented by Alton Burgess, a senior vice president with Voit Real Estate Services in Irvine.
“We generated eight qualified offers and selected a private investor who owned multiple restaurant concepts,” noted Cox. “Prior to formally marketing the property for sale, we advised the seller to extend near-term leases and execute new leases to provide minimal lease rollover for the buyer, thereby increasing the value of the asset.”
Located at 26711 Aliso Creek Road in Aliso Viejo, the 24,986-square-foot building was built in 2004 and sits on a 2.04-acre parcel. National and regional tenants in the building include Buffalo Wild Wings, Active Med Supply, Cold Stone Creamery, F45 Training, and Kidcreate Studio. Buffalo Wild Wings has successfully operated in the center since 2011. The building also houses three dental offices, which have been in operation since the property was built.
Aliso Viejo Town Center is 97% occupied and, in addition to anchors Ralphs, CVS Pharmacy, Staples, TJ Maxx, HomeGoods, PetSmart, Regal Cinemas, tenants include Advance Auto Parts, Barnes & Noble, Dollar Tree, Hoag Health Center, O’Reilly Auto Parts, Chick-fil-A, Raising Cane’s Chicken Fingers, Café Rio, Chase Bank, Chili’s Grill & Bar, Del Taco, Nekter Juice Bar, Opah, Panda Express, Sgt. Peperoni’s Pizza, Subway, The Habit Burger, Urban Plates, and Wahoo’s Fish Taco.
Aliso Viejo Town Center ranks in the top 2% in foot traffic for shopping centers nationwide, according to Placer.ai. Also, CVS Pharmacy ranks nationwide #104 out of 7,096 (98th percentile); Ralphs ranks #3 out of 46 within a 30-mile radius (95th percentile); TJ Maxx ranks nationwide #67 out of 1,123 (94th percentile); and Regal Cinemas ranks nationwide at #47 out of 364 (87th percentile).
Nearby retail destination anchor draws include Costco, Hobby Lobby, The Home Depot, Marshalls, Kohl’s, Old Navy, Pavilions, Petco, Sprouts, Stater Bros, Target, Walmart, and Whole Foods. Additionally, a 362-unit housing development is planned to be completed in 2024 across the street from Aliso Viejo Town Center, in a shopping center anchored by Trader Joe’s and 99 Ranch Market. A Tesla dealership and a Walgreens-anchored center are also nearby.
Aliso Viejo Town Center is ideally located off CA-73 (100,000 cars per day), connecting South Coast Metro/Newport Beach to South Orange County, and is positioned at Aliso Viejo’s primary thoroughfares of Aliso Creek Road and Pacific Park Drive (60,000 cars per day).
Aliso Viejo is a master-planned, affluent community with an average household income of $155,000 and a population of 279,000 within a five-mile radius of the shopping center. Nearby affluent cities include Dana Point ($165,000 AHHI), Laguna Beach ($212,000 AHHI), Laguna Hills ($110,000 AHHI), and Laguna Niguel ($181,000 AHHI).
Cox highlighted, “Orange County’s population of approximately 3.19 million, combined with iconic attractions like Disneyland and beautiful beaches drawing as many as 50.16 million annual visitors, significantly boosts the local economy. In 2023, visitors spent $15.8 billion in the region. Furthermore, nearly 44% of the population holds a bachelor’s degree or higher, leading to higher spending power and strong demand from retailers and neighborhood restaurants, making it an attractive market for investors.”
Discussing the current retail investment market, Fryman observed, “We are witnessing a significant rise in buyer activity across the board. This surge is primarily driven by the desire to capture year-end tax benefits and the recent drop in interest rates, which are anticipated to continue their downward trend through 2024 and into 2025. With interest rates on the decline, investors are actively seeking new opportunities to enter the market and benefit from more favorable financing terms.”