THOUSAND OAKS, CA—A triple-net leased Orchard Supply Hardware trades hands for a record-breaking price. Minnesota-based investor Oppidan Investment Co. buys the 43,138-square-foot single-tenant triple-net property from a private investor for $16.8 million or $388 per square foot—one of the highest prices ever paid for the property type in the Southern California market.

“Inventory in this price point in Ventura County is pretty much nonexistent, and specifically when you look at the submarket of the Conejo Valley and you zero into Thousand Oaks, it is extremely rare,” Christopher Maling, EVP at Colliers International, tells GlobeSt.com. “There are no home improvement or hardware stores within five miles of this property, and nothing can be built that could compete with this. So, you have a captured market for this type of need, and as a result of that, the sales outperformed your standard Orchard Supply hardware store. Those were really the defining attributes and features of this property. All of that goes into the formula for driving value and driving price.” Maling represented the buyer and seller in the transaction, along with Colliers EVPs David Maling and Stephen Algermissen.  

The seller decided to dispose of the asset because it owned the property as part of a partnership, and it was time to exit. The sales team received eight offers from potential buyers in the fully marketed transaction. In addition to the high barrier to entry market and the supply constraint, the property also had a stable tenant in Orchard Supply with seven years remaining on its lease and 20 years of lease options. Located at 1934 E. Avenida de Los Arboles in Thousand Oaks, the property sits on a five acre-parcel on a great retail-friendly intersection. “The property was bookended by a Haggen Grocery Store that took over an Albertsons and a Vons-anchored center, making it the go-to place if you are a resident in Thousand Oaks for your daily shopping needs,” says Maling. “The Orchard Supply property was well positioned for what people need, so long-term value going forward will exist. These properties rarely become available, and when they do people recognize the inherent value.”

Retail in the Thousand Oaks submarket does have high barriers to entry and properties rarely trade hands. As a result, there has been a recent trend of owners updating out-of-date shopping centers in the area. For example, the Oakbrook Shopping Center in Thousand Oaks has begun a multi-million renovation. The 89,000-square-foot center is 34 years old and has been outdated for many years. It is one of few neighborhood retail centers in the market to join the retail renovation and redevelopment trend popular for larger retail strip malls.