ESCONDIDO, Calif. — (RealEstateRama) — Hanley Investment Group Real Estate Advisors, a nationally recognized real estate brokerage and advisory firm specializing in retail property sales, announced today that the firm has completed the sale of Escondido Valley Center, a 92,169-square-foot ALDI, HomeGoods, BevMo! anchored shopping center located at one of the busiest regional intersections in the city of Escondido. The sale price was not disclosed.
Hanley Investment Group’s President Ed Hanley and Executive Vice Presidents Bill Asher and Kevin Fryman represented the seller, Paragon Commercial Group of El Segundo, Calif. The buyer, a family trust based in Orange County, Calif., was represented by Ken McLeod and Zachary Card of CBRE in Los Angeles.
According to Hanley, the buyer fulfilled a 1031 exchange with the purchase and transacted all-cash.
Escondido Valley Center is one of the city’s dominant grocery-anchored shopping centers and is located at 1346, 1352, 1358 West Valley Parkway on 7.23 acres near the on/off ramp to I-15 Freeway with over 220,000 cars per day. Tenants ALDI, HomeGoods, BevMo!, and Staples represent 97 percent of the 100-percent-occupied shopping center. Most of the tenants are on new or recently extended long-term leases.
Other national tenants located at the intersection include Albertsons, Target, The Home Depot, Big Lots, Bob’s Furniture, Cost Plus World Market, CVS/pharmacy Dick’s Sporting Goods, Pier 1 Imports, Ross Dress for Less, Tilly’s, T.J. Maxx and ULTA Beauty.
“The overall strength of this location was demonstrated in 2018 when Toys”R”Us vacated within the immediate trade area and was quickly backfilled,” said Hanley. “There is minimal box vacancy in the region where there is a customer base of over 227,000 people with an average household income of $90,000 within a 5-mile radius.”
Hanley added, “It is still a seller’s market for neighborhood centers situated in prime locations in Los Angeles, Orange and San Diego counties. With sustained pent-up demand and limited supply for investors to pursue, we expect cap rates to remain steady for those properties that have sustainable market rents with predictable incremental rent growth long-term.”
According to Fryman, Hanley Investment Group has sold four of the six ALDI-anchored shopping centers, which have traded hands in the last 18 months, totaling $89,550,000. For those ALDI-anchored centers, which sold for $10 million or more during this period, the average sale price was $23,715,000 representing a cap rate of 6.1 percent and the buyers were private investors.
“The private investment community has embraced ALDI as a viable and sustainable grocer in Southern California and we believe the trend will continue in the future as ALDI expands its footprint in the Golden State,” Fryman added.
About Hanley Investment Group
Hanley Investment Group Real Estate Advisors is a retail investment advisory firm with a $6+ billion transaction track record nationwide, who works closely with individual investors, lending institutions, developers, and institutional property owners in every facet of the transaction to ensure that the highest value is achieved. For more information, visit www.hanleyinvestment.com.
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