Local cash buyer lands rare coastal strip shopping center with 100% occupancy
CORONA DEL MAR, 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 completed the sale of Hamilton Center, a 6,800-square-foot multi-tenant shopping center in Orange County, Calif., for $3.3 million, representing a cap rate of 4.77%.
Hanley Investment Group’s Executive Vice President Eric Wohl and President Ed Hanley represented the seller, a local investment company. Eric Vu, an associate with Hanley Investment Group, represented the buyer, a local investor in a 1031 exchange.
Built in 1987 on .66 acres, the retail center is located at 9502-9510 Hamilton Avenue in Huntington Beach, Calif. and includes tenants 7-Eleven, Whata Lotta Pizza, a dental office and dry cleaners. Hamilton Center was 100% occupied at the time of sale.
“This is a rare coastal Orange County strip center that immediately generated 10+ offers,” said Wohl. “It is a trophy Huntington Beach location with a 100%-occupied multi-tenant strip center situated at a signalized intersection, one mile from the ocean.”
Vu said that the buyer sold his management-intensive apartment property and was looking for a quality investment with ease of management. “We delivered a property that met all of the buyer’s requirements; being in a highly-desirable Orange County market and with excellent demographics of $105,000 within a one-mile radius of the property was truly a ‘flight to quality’ for the buyer,” Vu added.
Other factors that made the property appealing to the buyer was the long-term historical occupancy of the tenants. “7-Eleven and Whata Lotta Pizza represent 51% of the square footage and have successfully operated at the center since 1987 and 2000, respectively,” Wohl noted.
Vu added that 7-Eleven recently executed an early lease extension, which further speaks to the strength of this location.
“Well-located multi-tenant strip centers offer a viable alternative to single-tenant net-leased properties as they offer an investor diversification of risk and, typically, a better yield,” said Wohl. “And, with a recently renewed 7-Eleven as an anchor, the buyer knows the center will have a strong draw for years to come.”
About Hanley Investment Group
Hanley Investment Group Real Estate Advisors is a retail investment advisory firm with a $5 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.