HUNTINGTON BEACH, CA-ValCenters of Newport Beach, CA, has sold CVS Plaza at 18872-17922 Beach Blvd. here to Sampont Properties LLC of Los Angeles. The purchase price of $13.87 million represented a 5.56% capitalization rate and $445 per square foot.
The property is a 31,140-square-foot, multi-tenant retail center situated on 2.54 acres. The center was built in 2004 and was remodeled in 2008. It is anchored by CVS/pharmacy and features such other tenants as O'Reilly Auto Parts, Starbucks, Bank of America and Verizon Wireless. CVS Plaza was 100% occupied at the time of sale.
Managing director William B. Asher, Eric P. Wohl and Edward B. Hanley of Hanley Investment Group Real Estate Advisors represented the seller in the sale, while the buyer was represented by Jim Wellbaum of Triwell Properties in Hawthorne, CA. “We were able to structure many creative solutions to the transaction that benefitted both buyer and seller, which resulted in an escrow that closed within approximately 21 days,” said Asher in a prepared statement.
He added that historically, a premium has been paid for Orange County retail, “and the sale of CVS Plaza is another example. We certainly don't see any signs of this changing in the future. A combination of historically low interest rates, lack of supply and increased investor demand has given us the ability to obtain record pricing on multiple Orange County properties we haven't seen since 2007-2008.”
As GlobeSt.com reported in January, Hanley ended 2012 with a bang, closing out the fourth quarter with the sale of 23 retail properties totaling more than $90 million. The retail transactions included grocery/drug-anchored shopping centers and multitenant and single-tenant retail properties.
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Carrie Rossenfeld
Carrie Rossenfeld is a reporter for the San Diego and Orange County markets on GlobeSt.com and a contributor to Real Estate Forum. She was a trade-magazine and newsletter editor in New York City before moving to Southern California to become a freelance writer and editor for magazines, books and websites. Rossenfeld has written extensively on topics including commercial real estate, running a medical practice, intellectual-property licensing and giftware. She has edited books about profiting from real estate and has ghostwritten a book about starting a home-based business.
