Matthews Brokers Sale of OC La-Z-Boy

The nearly 20,000-square-foot, single-tenant retail asset was sold at the full asking price to a buyer involved in a 1031 exchange.

23029 Eastpark Drive
23029 Eastpark Drive

Matthews Real Estate Investment Services has brokered the sale of a La-Z-Boy Furniture retail property in Yorba Linda, Calif. The transaction was valued at just under $5.5 million, the full asking price for the building. The seller, Timothy Casey of Santa Barbara, had acquired the property in 2006. The buyer, a group of four individuals based out of San Jose, did a 1031 tax-deferred exchange, seeking to transition from a multifamily to a single-tenant retail property. The new owner financed the acquisition with a $2.5 million mortgage held by StanCorp Financial Group, according to public records. A Matthews team led by El Warner and Jordan Gomez represented the seller in the transaction.

Located at 23029 Eastpark Drive, the 18,630-square-foot building was constructed in 2001 and leased by La-Z-Boy in June 2006. The 15-year, triple-net-lease agreement with 7.5 percent annual increases expires in mid-2021, though the tenant has three five-year extension options. The property is exposed to more than 200,000 vehicles per day from the adjacent Riverside Freeway. The building sits next to a number of other large retailers, including Best Buy, Bed Bath & Beyond, Dick’s Sporting Goods and Kohl’s.

“Despite the uncertainty with big-box retailers, this transaction signifies the continued demand from buyers that this asset class still has viability,” said Warner, executive vice president & national director of shopping centers for Matthews, in prepared remarks.

Earlier this year, another 1031 exchange transaction closed in Orange County, valued at $59 million.

Image via Google Street View