An OC investor paid nearly $18.6M for a newly renovated, 24k SF shopping center in Huntington Beach. The property on the southeast corner of Brookhurst Street and Adams Avenue is in a busy commercial district and surrounded by national retail tenants, such as Target, Kohl’s, Sprouts, CVS, Chase and Wells Fargo banks, and Starbucks.
The seller, LA-based LBG Realty Advisors, acquired the center from US Bank in early 2015 and redeveloped and re-tenanted it over the last year. The makeover included relocating US Bank and redevelopment of that space for PetSmart, updating the façade, maximizing the parking plan and renovating. The property is 100% leased. Other tenants are Phenix Salon, Tenet Healthcare and Orangetheory Fitness. LBG, led by principals Douglas Beiswenger, David Goldman and Leslie Lundin, handled leasing in-house.
“Due to the infill nature of this location and difficulty developing new retail properties in Huntington Beach, this acquisition provided a unique redevelopment and lease-up opportunity,” Leslie says. She says the space had been held off the market because of the ground lease, which recently expired; otherwise it would have been redeveloped sooner.
This sale represents one of the largest non-grocery-anchored retail sales in the city of Huntington Beach during the last 10 years, says Hanley Investment Group EVP Bill Asher, who along with Hanley founder and president Ed Hanley and senior associate Eric Vu brokered the off-market deal. Vu says supply of quality, well-located retail assets leased to creditworthy corporate tenants is limited throughout OC. He said OC retail owners tend to be long-term holders due to the desirable, dense infill, coastal location.
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