Built for $130M, Premier 378,000-SF Suburban Los Angeles Shopping Center Trades for $94.5M
- Jun 09, 2010
June 9, 2010
By Barbra Murray, Contributing Editor
The 378,000-square-foot Shoppes at Chino Hills, the largest bank-owned retail asset in Southern California, has been sold without any attached debt in a $94.5 million transaction. A private Southern California-based investment group took the premier lifestyle property, located approximately 30 miles west of Los Angeles in the affluent community of Chino Hills, Calif., off the hands of a bank consortium spearheaded by Bank of America.
Featuring 316,000 square feet of retail space and 62,000 square feet of office space, The Shoppes opened its doors in 2008 within a 750,000-square-foot master-planned development that is also home to the Chino Hills Civic Center, the Chino Hills City Hall, a police station and a public library. The Atloon + Porter-designed trophy property, currently 87 percent leased, fell into the hands of lenders after developer Opus West Corp. filed for Chapter 11 bankruptcy in July 2009.
The group that acquired The Shoppes is among the many investment entities that are successfully capitalizing on the country’s multi-billion-dollar distressed commercial real estate market. According to real estate services firm Holliday Fenoglio Fowler, which marketed the property, The Shoppes attracted a bevy of hopeful buyers. Ultimately, the purchase turned out to be a steal of a deal. Talk about discount to replacement cost, Opus West spent $130 million, or approximately $344 per-square-foot, to build the open-air lifestyle center, and the new owner snapped it up for about $250 per-square-foot.