SANTA ANA, CA—GlobeSt.com has learned exclusively that Olen Properties has sold the McFadden Center, a 184,737-square-foot retail, industrial and office complex, for $30.7 million to Newport Asset Management Group LLC. The center, which is 98% occupied with two vacant suites, includes 57 tenants in 11 buildings consisting of two retail pads, one retail-in-line building with 18 suites and eight business-park buildings that contain 79 suites with a mix of office tenants.
The buyer was represented in the transaction by Ryan Swanson and Kurt Bruggeman of Lee & Associates Irvine. The seller was represented by Mike McCann, Ryan Gallagher and Dan Curtis of HFF.
The property sold at a 7% cap rate. Bruggeman tells GlobeSt.com the high cap rate was likely achieved because “the mixture of product type wasn't of interest to some institutional buyers.”
The property was “an attractive purchase because it offers excellent cash flow and diversified income stream from industrial, office and retail tenants alike in a central OC location,” says Swanson. He adds that the buyer plans to hold the property for the long term and to renovate the retail center and façade to provide a higher-image feel to the project over time.
As GlobeSt.com reported earlier this week, as the live/work/play trend grows, expect retail properties located close to office properties to see higher occupancy levels in Orange County moving into 2015, Jared Dienstag, senior analyst—research with Cushman & Wakefield, told GlobeSt.com. We spoke exclusively with Dienstag about the office and industrial investment market in Orange County, why it appeals to foreign investors and emerging trends he sees for the year ahead.
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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.
