Investors Keen to Lock in Low Rates
In one of the early deals of 2015, Newport Asset Management Group acquired the 184k SF mixed-use McFadden Center in Santa Ana from Olen Properties for $30M. Lee & Associates Irvine's Kurt Bruggeman (right, snapped with colleague Ryan Swanson), who repped the buyer, tells us demand for quality investment properties will be high for the balance of 2015. Those strong fundamentals are attracting investors--and so far interest rates are still low (but everyone senses this may be the last year for that).
Even so, each deal is unique. McFadden Place, Kurt adds, is a little unusual, in that it's about 80% business park and 20% retail, making it less appealing to some institutional investors without an appetite for some retail in their portfolio. Kurt tells us the 7% cap rate was an attractive purchase for Newport and that it would have been lower if the property was 100% business park. Ryan says Newport plans a long-term hold, and will renovate the retail center and façade. Olen Properties was repped by Mike McCann, Ryan Gallagher and Dan Curtis of HFF.