The privately-held investment firm Barings paid $66.2 million for the Ralphs-anchored Village Center at Rose on Oct. 15 in Placentia.
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“The acquisition of Village Center at Rose, anchored by a dominant grocer, further advances our strategy to invest in necessity-based retail, with a focus on strengthening portfolio income durability and cash flow visibility,” Kevin Miller, Barings’ head of U.S. Real Estate Acquisitions, said in a statement. “The property’s established tenant base, strong occupancy and location in a supply-constrained market align well with our investment approach.”
CBRE represented the seller, First Washington Realty.
The 118,876-square-foot shopping center at 600-858 North Rose Drive was built in 1996 on 10.15 acres at the northeast corner of North Rose Drive and Alta Vista Street.
Ralphs, which has operated at the center since it opened, occupies 37% of the leasable area, according to CBRE.
The brokerage said 80% of the center’s existing tenants have leased at the center for more than 10 years. Those tenants include Jersey Mike’s Subs, The UPS Store, Cold Stone Creamery, WaBa Grill, Chase Bank, Carl’s Jr., Carbon Health, Phenix Salon Suites and Australian Swim School.
“Village Center at Rose combines a long-standing grocery-anchored, durable tenant occupancy and limited competing supply. Those fundamentals generated strong interest from investors seeking established grocery-anchored retail in Orange County,” said Jimmy Slusher at CBRE.
Barings is a subsidiary of MassMutual.
While retail investment remains active in the region, sales volume has not translated into a broad pricing recovery, according to an October report from NAI Capital.
Southern California saw sales of retail properties hit 5.05 million square feet in the third quarter for a combined $1.43 billion, essentially flat versus the second quarter, the report said. Year-to-date sales were 14.08 million square feet and $4.93 billion, compared with 16.22 million square feet and $5.47 billion a year ago.
The average sale price declined to $338 per square foot, down 6.6% from the second quarter and 12.7% year over year, indicating softer pricing across recorded transactions.
Investments will continue to “remain subdued as sustained inflation keeps Treasury yields and borrowing costs high,” NAI researchers said.
“This environment favors assets with dependable cash flow, durable tenant demand and manageable operating expenses,” NAI researchers wrote. “Properties that need significant lease-up, redevelopment or aggressive rent growth face greater underwriting scrutiny.”
Fullerton Court sells for $12.7 million
The retail center Fullerton Court sold Oct. 21 for $12.7 million in Fullerton.
Hanley Investment Group and Summit RE represented the seller, a partnership based in Newport Beach, while the buyer, a Los Angeles-based private 1031-exchange investor, was self-represented.
“The property’s 100% occupancy, internet-resistant tenant roster, long-term lease profile and built-in annual rental increases attracted significant investor interest,” said Kevin Fryman, an executive vice president at HIG.
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Built in 1982 and expanded in 2004, Fullerton Court sits at 444 North Harbor Blvd. at intersection with Chapman Avenue.
The 20,309-square-foot center is next door to Fullerton College and is anchored by FedEx Office, which has operated at the property for more than 25 years and extended its lease for an additional 10 years recently. Other tenants include Pixiu Mala Hongtang, a Korean-Chinese hotpot restaurant.
35 apartments in Anaheim fetch $9.65 million
Knott-Orange Apartments, a 35-unit complex in Anaheim, sold on Oct. 14 for $9.65 million, or $275,714 per unit.
“This transaction marked the fourth closing from a larger Anaheim-area multifamily portfolio as the seller continues to reposition its holdings through a 1031 exchange strategy,” said Nick Kazemi, managing director investments at Marcus & Millichap. “The buyer plans to renovate unit interiors and make property improvements to increase rental income, reflecting continued demand for well-located multifamilyassets with operational upside in Orange County.”
The seller was a family that had owned and operated the property for more than 30 years. The buyer is a Southern California-based property management company.
Built in 1977, the 32,325-square-foot property on 1.25 acres sits at 515 S. Knott Ave.
The community includes six one-bedroom, one-bath units and 29 two-bedroom, one-bath units. Property amenities include a swimming pool, spa and on-site laundry facilities.
La Palma office building fetches $14.3 million
A 56,175-square-foot office building at 20 Centerpointe Drive in La Palma sold Oct. 19 for $14.3 million, according to CBRE.
The brokerage said a local investor bought the property in a 1031 exchange.
“The building presented the buyer with a compelling combination of durable in-place income and future upside,” said Sammy Cemo, first vice president at CBRE. “The Orange County office market is experiencing its fundamentals dramatically improving across the board. We expect to see this trend continue with investors coming off the sidelines to buy quality office buildings.”
The single-story property completed in 1988 sits on 3.57 acres. At the time of sale, the building was roughly 84% leased, with tenants including Convergint Technologies, ISEC Inc. and Telecare Corp.
The property is part of the Centerpointe La Palma campus
Philippe Castillo is a newly hired associate director at Newport Beach-based Talonvest Capital, a commercial real estate debt and equity advisory firm. Castillo joins from Tricon Residential, a build-to-rent housing developer. (Photo courtesy of Talonvest Capital)
On the move
Philippe Castillo is a newly hired associate director at Newport Beach-based Talonvest Capital, a commercial real estate debt and equity advisory firm. The firm is expanding its focus on multifamily assets. Castillo joins from Tricon Residential, a build-to-rent housing developer.
The real estate roundup is compiled from news releases and written by Business Editor Samantha Gowen. Submit items and high-resolution photos via email to [email protected] . Please allow at least a week for publication. All items are subject to editing for clarity and length.
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