SANTA ANA, CA—MCA Realty, a full-service real estate investment and management company, has sold three of the four buildings that make up the Brookhollow Freeway Showroom Center, a multi-tenant retail/showroom facility that is situated alongside the Costa Mesa 55, one of Orange County's busiest freeways.
MCA Realty acquired the asset in 2013 and implemented a repositioning plan to align with tenant demand, according to Tyler Mattox, a principal at MCA Realty.
"We recognized that there was an opportunity to renovate this asset and reposition it as a contemporary showroom project," Mattox explains. "Based on our execution of this business plan, we were able to attract and retain high-quality, long-term tenants, which increased the overall property value. In addition, we capitalized on the tremendous demand for Orange County real estate in today's market in order to drive value for the asset. This strategy enabled us to stabilize and sell three of the four buildings in a relatively short period of time."
MCA Realty worked with Architects Orange and DBaC Construction to renovate the asset, including subdividing the single parcel into eight legal units, as well as implementing interior and exterior improvements throughout the center.
"The subdivision of each building provides the opportunity to increase value, add flexibility, and significantly enhance the long-term value of the asset," says Mattox.
The three buildings were sold in two separate transactions that totaled over $16.8 million. MCA Realty plans to retain the remaining building currently occupied by Wine Exchange.
The first transaction was the sale of 1540 Brookhollow Drive, a 18,568 square-foot building at the Southeast corner of Brookhollow Drive and Warner Avenue. The asset was purchased by the current occupant, McFadden-Dale Industrial Hardware. Hank Wildermuth of Available Properties represented the buyer in the acquisition.
The second transaction encompassed two buildings at 1554 and 1548 Brookhollow Drive. The 31,900 square-foot building at 1554 Brookhollow is occupied by W.W. Grainger Inc. and Ammo Bros. One-half of the 24,069 square-foot building at 1548 Brookhollow is occupied by Sit & Sleep, and the remaining 12,055 square-foot space is vacant.
MCA Realty was represented by Phil Voorhees, Brad Rable, and John Read of CBRE as the seller in the transaction.
The buyer, a private investor, acquired both buildings in a 1031 exchange. David Ramirez of Desert Coast Realty represented the buyer in this transaction.
MCA Realty is a full-service real estate investment and management company specializing in office and industrial properties throughout the Western US. The goal of the company is to identify commercial real estate investment opportunities and execute value creation strategies that maximize returns to its investors.
MCA Realty's principals, Tyler Mattox, Jared Gordon, and Peter Cheng, have successfully navigated a full spectrum of market conditions, and pride themselves on building and maintaining strong relationships with industry partners.
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