GARDEN GROVE, CALIF. – CBRE Senior Vice President Philip D. Voorhees announced today that he, Brad Rable and their National Retail Investment Group – West (NRIG-West) team completed the sale of Garden Grove Festival Square, a 35,515-square-foot strip center in the City of Garden Grove, Calif., leased to a synergistic mix of regional and local tenants including Popular Community Bank, Woori American Bank and United Dental Group. The sale price was $11.9 million, representing a 5.59% cap rate.
CBRE’s retail investment experts Voorhees, Rable, Megan Read, Matt Burson, Jimmy Slusher and John Read, represented the seller, Atherton, Calif.-based investment company, Meredith Enterprises. The buyer, represented by a cooperating/selling broker, was an Orange County-based private investor focused primarily on multi-family investments, purchasing its first commercial property.
Garden Grove Festival Square, located at 10120-10130 Garden Grove Blvd. and 13011 Brookhurst Street, sits on a 3.07-acre site directly across from the Brookhurst Triangle, a planned 600-unit residential development that will also have a small retail component. The corner Popular Community Bank pad was built in 1967, and in 2006 the remaining center was built. The property was 72% occupied at the time of sale.
According to Voorhees and Rable, the CBRE team’s marketing system distributed more than 447 offering memoranda to investors and brokers, and through the team’s “managed bid” offer process, generated more than 9 offers to purchase the property. The purchase price mirrored CBRE’s pricing guidance to the ownership.
“The low cap rate based on 72% occupancy demonstrated the project’s quality and the buyer’s belief in Garden Grove Festival Square’s location and long-term potential,” said Voorhees.
“The area around the property is in transition from predominantly Korean to an increasingly Vietnamese trade area. The purchaser owns close to 30 properties proximate to Garden Grove Festival Square and plans to reposition the asset leveraging his deep relationships within the community,” Voorhees said.
Voorhees added, “The project fundamentals, its immediate upside opportunity, and its central Orange County location, produced strong interest from private investors, along with professional real estate capital including a pension fund advisor.”
With this closing, CBRE’s NRIG-West team has closed 89 transactions since the start of 2012 for a total consideration of $1.9 billion. In total, the NRIG-West team has listed and sold more than $7.8 billion in retail transactions. Select NRIG-West Team California listings include South Hills Plaza in West Covina, Calif., listed for sale for $20,995,000; Commonwealth Square in Folsom, Calif., listed for sale for $20,095,000; and Norwalk Plaza in Norwalk, Calif., listed for sale for $11,357,000. More information available at www.cbre.com/nrigwest
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2013 revenue). The Company has approximately 44,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through approximately 350 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website at www.cbre.com.
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