The Anaheim GardenWalk traded hands for $80 million last week, a significant discount-to-replace price tag on a value-add play with strong upside opportunity. The 430,000-square-foot property was built a decade ago for $284 million, and houses ample experience- and entertainment-focused tenants, like Bowlmor Bowling Center, AMC Theatres, 24 Hour Fitness, Cheesecake Factory, P.F. Chang's, and California Pizza Kitchen, as well as the House of Blues, which recently relocated to the property.

“Buying well-positioned real estate inside the Anaheim Resort District at a substantial discount to replacement cost is prudent,” Jimmy Slusher, a VP at CBRE National Retail Partners West, tells GlobeSt.com. “GardenWalk was originally built in 2007-2008 at a cost of nearly $284 million. Now that House of Blues has relocated to the property, AMC Theatres is set to open soon and the JW Marriott is vertical with construction, the opportunity to continue improving the site and further capitalize on the leasing momentum could not have been better timed.”

Slusher, along with Kirk Brummer, Sean Heitzler and Philip D. Voorhees, represented the seller, a JV including New York-based Arcturus, in the deal. For Arcturus, the sale was the completion of its five-year business plan. Once the property came to market, it received significant interest from the gamut of capital sources. “Interest in the offering came from a broad range of investors. Prospective groups ranged from local hotel operators to private high-net-worth family offices,” says Slusher.