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ANAHEIM, CA—A private L.A.-based investor's purchase of Anaheim Lincoln Shopping Center, a 72,950-square-foot neighborhood center here, offers a chance to remerchandise an already-flourishing center with all new lessee at market rents, Savills Studley senior managing director Kyle Miller says. Miller and Bill Bauman, EVP, handled the $18.5-million sale—with a 1.37% cap rate on the 2016 ground rent—on behalf of the buyer and seller, a private partnership.

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Miller tells GlobeSt.com, “It is our understanding the seller was a private partnership between two companies, one based in Los Angeles and the other from New York. As for the buyer's plan, our understanding is they will keep it retail and invest capital in a full renovation when the ground lease burns off in 2021 and deploy a leasing strategy to merchandise the shopping center to cater to the demands of the trade area.”

Miller adds that it's a fairly pretty unique situation where you have a short-term ground lease and the tenant leases expiring conterminously on a large parcel (plus or minus 7 acres) in the heart of Anaheim. “We had offers from groups that were looking at it from a residential development standpoint—maybe a mixed-use element with a mix of apartments/condos/retail—but as far as we know, this buyer is content with keeping it retail.”

The center is located at 2394 Lincoln Ave. and is anchored by Vallarta Supermarket and encumbered by a short-term ground lease with just under four years of term remaining. According to Miller, “Anaheim Lincoln Shopping Center is a unique infill redevelopment opportunity where the investor will inherit the improvements at the expiration f the ground lease, and we have the opportunity to remerchandise an already flourishing center with all new leases at market rents.”