In a recent OC retail buy, a local investor in a 1031 exchange purchased Hamilton Center, a 6.8k sf, multi-tenant shopping center in Huntington Beach, for $3.3 mil ($485/sf). The deal came in a cap rate of 4.77 percent.
Built in 1987 on .66 acres, the retail center is located at 9502-9510 Hamilton Ave, west of Brookhurst St. The property was 100 percent occupied at the time of sale to such tenants as 7-Eleven, Whata Lotta Pizza, a dental office and dry cleaners. 7-Eleven and Whata Lotta Pizza represent 51 percent of the square footage and have operated at the center since 1987 and 2000. In addition, 7-Eleven just recently executed an early lease extension.
“This is a rare coastal Orange County strip center that immediately generated 10+ offers,” said Wohl. “It is a trophy Huntington Beach location with a 100-percent occupied multi-tenant strip center situated at a signalized intersection, one mile from the ocean.”
“Well-located multi-tenant strip centers offer a viable alternative to single-tenant net-leased properties as they offer an investor diversification of risk and, typically, a better yield,” said Wohl. “And, with a recently renewed 7-Eleven as an anchor, the buyer knows the center will have a strong draw for years to come.”