Hanley Completes Target Shadow-Anchored Retail Sale
- Aug 22, 2017
Hanley Investment Group Real Estate Advisors arranged the sale of Oak Grove Crossing, a 22,577-square-foot shopping center in Lake Elsinore, Calif. The firm represented the buyer and seller in the $11.6 million sale of the Target shadow-anchored asset.
Located at 18283 & 18285 Collier Ave. on 2.4 acres, the property was fully occupied at the time of the sale by 81 percent national and regional credit tenants. That includes McDonald’s, Starbucks, GameStop, Pacific Dental, Papa John’s Pizza, Subway, Verizon and Yogurtland. The stand-alone McDonald’s pad is on a long-term ground lease and can be sold separately in the future, taking advantage of the historically-low caps demanded by single-tenant buyers.
Around 77 percent of the tenants have been located at the center since it was built in 2006 and all have either signed a new lease or extended the existing one since 2012, according to Hanley Investment Group Executive Vice President Kevin Fryman, who represented the seller, a private investment partnership based in Murrieta, Calif.
“This location includes Target’s grocery concept, as well as a CVS/pharmacy inside the store, driving ‘daily needs’ traffic to the center,” said Hanley Executive Vice President Bill Asher, in a prepared statement. “Additional traffic draws include Bank of America and Tarbell Realtors, which are located in the shopping center, but were not a part of the sale.” Asher and Associate Jeff Lefko represented the buyer, a family trust from Orange, Calif.
The property is located at the State Route 74 exit of Interstate 15, at a signalized intersection with 52,000 cars per day. The center is in an area which recorded a 61 percent population growth within a five-mile radius between 2000 and 2016 and an average household income of $76,000. The population is projected to grow by a further nine percent between 2016 and 2021, according to Asher. Inland Empire retail market vacancy stood at 8.4 percent during the second quarter, according to a Colliers report.
Hanley has also brokered the sale of Sierra Del Oro Towne Centre, a 110,004-square-foot retail center in Corona, Calif.
Image courtesy of Hanley Investment Group