The sale of Pacific Gateway Shopping center at 2311, 2365 and 2399 Seal Beach Blvd. reflected a 6.59% cap rate and $657 per sf. "It's definitely higher that the sf average," says CBRE's Phil Voorhees, who along with Megan Wood, Patrick Toomey and Barclay Harty represented Panattoni in the sale. Voorhees estimates the sale of the center was at least $100 per sf above the average.
The buyer was a foreign investor seeking to increase his holdings in the US and to take advantage of the weak dollar, Voorhees says. He declined to name the buyer, saying only that he's a doctor from Brittan "who has about 80% of his holdings in Europe and the Middle East and 20% in the US."
Voorhees noted that it's rare for a private investor to do an all-cash deal this large. "When you get up into centers this size we'll may be do one deal a year in all cash to someone who's not an institutional investor," he adds.
Pacific Gateway includes tenants such as Charles Schwab, Subway, Countrywide, Starbucks and Anytime Fitness.
Voorhees says that before selling Panattoni had been seeking to expand the center's 91% occupancy with one or two "quick, casual restaurants."
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