LOS ANGELES—Despite restrictions from China on exporting capital, Chinese investors are still showing up at the bidding block. Several Chinese investors bid on the recent sale of the Arcadia Gateway Center, which ultimately traded hands for $62 million. The property is a 156,046-square-foot mixed-use office, retail and medical complex that traded hands for a 5.45% cap rate.

“Despite recent changes in China with regard to the restrictions on exporting capital, there was an unusually large amount of interest from Chinese investors, primarily due to the property's superior location within the San Gabriel Valley,” Pat Kent, EVP at Hanley Investment Group, tells GlobeSt.com. “The high level of investor interest and the number of qualified offers procured within the first 30 days demonstrates a still very healthy and active market that is hungry for quality, diversified investment opportunities such as Arcadia Gateway Center.”

Although there were several bids from China, a domestic investor JLI Investment won the deal from the two sellers Arcadia Gateway Centre Delaware Partners and Post Exchange. The property has strong occupancy and limited surrounding competition, making this a popular deal for both domestic and international buyers. “The property is in close proximity to world-renowned Santa Anita Park Race Track. The Santa Anita racetrack offers some of the most prominent racing events in the U.S. and is considered by many to be the world's most beautiful racetrack in the world with the backdrop scenery of the San Gabriel Mountains. The Santa Anita Race Track hosted the 2016 Breeders' Cup World Championships in early November,” says Kent, who represented the sellers in the deal, along with Hanley Investment Group president Ed Hanley. “There are currently no existing sites available for a future competing development,” said Kent. “All of the land in the immediate trade area is primarily developed for mid-rise and high-rise office, medical office and hotels.”

The majority—32%—of the net operating income comes from the retail portion of the property. The retail is 91% leased with a tenant mix that includes BJ's Restaurant, Starbucks and Men's Warehouse. The remainder of the property is also strong with 100% occupancy in both the office and medical portions. “We focused on the strength and security of both the national and regional tenants along with the mix of retail and office and central location within Los Angeles,” says “We also demonstrated the strong occupancy of 98% occupied and the historical occupancy with 73% of the tenants have occupied the space for more than 10 years with minimal lease rollover.”