SANTA ANA, CA—GlobeSt.com has learned exclusively that Horowitz Group has acquired the McFadden Center, a 184,737-square-foot retail, industrial and office complex here, for an undisclosed amount from California-based Newport Asset Management Group LLC. The mixed-use property is located at 1261 S. Lyon, 1277 S. Lyon, 1669 E. Wilshire, 1715 E. Wilshire, 1735 E. Wilshire, 1815 E. Wilshire, 1790 E. McFadden, 1780 E. McFadden, 1714 E. McFadden, 1700 E. McFadden and 1766 E. McFadden.
The center, built in 1986, consists of eight industrial/flex buildings, one in-line retail building and two retail pads on 13.44 acres, with major street frontage on McFadden Ave. and Lyon St.
The buyer was interested in the property as an investment opportunity that offers dependable, diversified cash flow—it holds approximately 60 tenants in 103 total units, with current occupancy at 98%. Horowitz Group intends to upgrade the overall image of the buildings and invest in the project to maintain its occupancy and increase rents over time.
SVPs Kurt Bruggeman, Ryan Swanson and Philip Cohen and VP Skyler Serrano of Lee & Associates-Irvine's capital-markets group represented both parties in this transaction. The offering had more than 100 confidentiality agreements signed, which produced significant interest and multiple offers. While GlobeSt.com was unable to determine the sale price before deadline, we had reported exclusively in January 2015 that Olen Properties sold the complex to Newport Asset Management Group for $30.7 million. At that time, the center was 98% occupied with two vacant suites and 57 tenants; the retail-in-line building had 18 suites and the eight business-park buildings contained 79 suites with a mix of office tenants.
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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.
