Bershon Realty Sells Orange County Shopping Center
- Aug 23, 2018
Merlone Geier Partners of San Diego has acquired the leasehold interest in Hunter Court, a 127,360-square-foot retail center in Lake Forest, Calif., from Bershon Realty Co.
Hanley Investment Group represented the seller in the transaction. The price was not disclosed.
“There is a lack of high-quality retail assets for sale in Orange and Los Angeles counties right now,” Jeremy McChesney, Hanley Investment Group’s executive vice president, told Commercial Property Executive. “Investors are still willing to pay for premium locations, which are the most desirable assets.”
According to McChesney, there was a good amount of interest in the property, but it was a complicated asset due to the leasehold interest and ground lease. Therefore, the property required a very unique, qualified buyer like Merlone Geier Partners.
Originally constructed in 1969, Hunter Court is situated on 9.27 acres and is anchored by CVS/pharmacy and Ross Dress For Less. Other tenants include Payless ShoeSource, Jack in the Box, Café Rio, Sally Beauty Supply, OneMain Financial and HearUSA. At the time of the transaction, the shopping center was 98 percent occupied.
Over the years, numerous capital improvements have been made to Hunter Court, such as the repaving of the property’s parking lot in 2016, and the addition of new storefronts and canopies in 2015. Two years earlier, Jack in the Box rebuilt its restaurant to its newest concept demonstrating a long-term commitment to the site.
A top location
The property is situated at 23812-24442 Rockfield Blvd. and the primary appeal of the center was its location; the fact that it is right off of the I-5 freeway and has wonderful exposure and visibility along both El Toro Road and Rockfield Boulevard, benefiting from the highly dense and affluent trade area.
“The property is also near Merlone Geier Partners’ Five Lagunas project, which is the site of the former Laguna Hills Mall,” McChesney said. “The fact that you have The Orchard and other large retail assets in the area was very appealing to the buyer. There was a lot of retail synergy which was attractive to the buyer.”
Earlier in August, Hanley Investment Group arranged the sale of Natomas Shopping Center, a 50,168-square-foot retail center in Sacramento, Calif. The property sold for $10.3 million with a 6.3 percent cap rate in a 1031 exchange. In March, Hanley Investment Group Real Estate Advisors arranged the sale of Westlake Village, a 31,980-square-foot retail center in Sacramento, Calif., located at 3501-3511 Del Paso Road.
McChesney added that the Orange County retail investment market is very active, and foresees properties along the coast with strong real estate fundamentals and internet-resistant tenants to continue to command high prices.
Image courtesy of Hanley Investment Group