What's Hot, What's Not for OC Retail Properties
As the retail real estate market is splitting into haves and have nots, winning properties—especially in land-tight markets like OC—have certain features that attract investor interest and continue to fetch strong prices, CBRE EVP Philip Voorhees tells us.
Recently Philip repped a private seller in the disposition of the 110k SF McCalla Centre in Santa Ana, which Philip said generated strong investor interest as a property in a "densely populated, infill location with low anchor lease rates and many of its tenants performing at high sales volumes." Those features in a retail property provide tremendous embedded value and create a future upside.
Built in 1986, McCalla Centre is on more than eight acres at 230 N Harbor Blvd, and is more than 97% occupied. Philip says the property generated more than 14 offers, and the ultimate purchase price—nearly $32M, representing a 3.76% cap rate—exceeded CBRE’s pricing guidance to ownership. Philip and colleagues James Slusher, Megan Wood, Brad Rable, Matt Burson and John Read worked on the deal; the buyer, a San Diego-based private real estate investment fund manager, was also repped by that team.