The purchase was the second in a week announced by Pan Pacific, which last week announced the acquisition of the 210,136-sf Larwin Square neighborhood center in the Orange County city of Tustin, Calif. for $28.5 million.
The company says the acquisitions were financed by a combination of draws under the company's unsecured line of credit, cash flow from operations and net proceeds from recent dispositions, which included the sale of three non-strategic assets totaling approximately $8.7 million.
Stuart A. Tanz, president and CEO of Pan Pacific, says both Gordon Ranch and Larwin Square are "situated in demographically strong, affluent communities, with an average population of approximately 438,000, within a five-mile radius, and an average household income of approximately $70,000."
Pan Pacific is focusing on buying in "in-fill" markets, Tanz says, saying such centers offer "strong growth potential and high-barriers to entry." Year-to-date, he says, the company has acquired five grocery-anchored centers totaling 827,000 sf, for approximately $107.7 million.
The latest purchase, Gordon Ranch, is near Highway 71 on Chino Hills Parkway (Highway 142), near Pan Pacific's 337,687-sf Chino Town Square. Gordon Ranch is 91% leased and is anchored by Ralphs Supermarket, a division of The Kroger Co. Pan Pacific represented itself in the purchase, while the seller was represented by Todd Goodman and Preston Fetrow of CB Richard Ellis.
The properties Pan Pacific sold for $8.7 million included the 49,258-sf Dodge Center in Fallon, Nev.; 58,770-sf St. Johns Center in Portland, Ore.; and Tacoma Shopping Center, a 13,448 square foot single-tenant property in Portland.
The two other non-strategic assets it has under contract for sale, for a total of $10.8 million, include the 58,560-sf Shute Park shopping center in Portland; and Raley's, a 60,114 square foot single-tenant property in Fallon, Nev.
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