Buena Park Downtown Mall Sells For $85M
Buena Park’s 535k SF Buena Park Downtown mall has sold for $85M, at an approximate cap of 6.72%. The property was 93% occupied at the time of sale. Tenants include: John’s Incredible Pizza, Krikorian Theatres, 24-Hour Fitness, Ross Dress for Less, Bed Bath & Beyond, TJ Maxx, DS and Big Air Trampoline, along with a complementary mix of pad and shop tenants.
“At this pricing, Buena Park Downtown is among the lowest cap rates nationally in 2015 for a less-than-A mall,” says CBRE EVP Philip D. Voorhees. He, along with Jimmy Slusher, Todd Goodman, Matt Burson, Megan Wood, Brad Rable, Kirk Brummer, Preston Fetrow and John Read, repped the seller, a Manhattan-based real estate investment management firm. Philip says the average B mall cap rate nationally on multi-level properties was much closer to 10% in 2015. The strong competition among bidders supports investor interest in Orange County and SoCal's densely populated trade areas, he says. "We saw exceptional interest from investors with ties to Korea and China on this offering,” Philip says. The property was marketed through a managed bid process, which generated 10 offers.
Built in 1961, Buena Park Downtown (on 28 acres on La Palma Avenue) got a major makeover in 1998. The buyer, a Los Angeles-based private investor, purchased the property to effectuate a 1031 Tax Deferred Exchange. The buyer was represented by CBRE’s Tim Bower and Johnny Choi of the Beverly Hills office. CBRE leasing professionals Walter Pagel and Dan Samulski were the leasing agents for the property at the time of the sale.