IRVINE, CALIF. – October 22, 2014 – (RealEstateRama) — Hanley Investment Group Real Estate Advisors, one of the most dominant retail investment groups in the United States and a market leader in the sale of retail properties, announced today that that the company negotiated the sale of more than 128,000 square feet of retail space in Los Angeles County, Calif., totaling nearly $29 million, with the sale of Sierra Commons in Palmdale and Pacific Plaza in Torrance.
Patrick G. Kent and William B. Asher of Hanley Investment Group represented the seller, Grae Palmdale Landlord, LLC of Los Angeles, in the sale of the leasehold-interest in Sierra Commons, a 104,811-square-foot community shopping center in Palmdale, for $18,300,000. The buyer was an investment group led by Progression Real Estate Investments of Los Angeles. The shopping center, which is located on 9.78 acres at 39626 10th Street in Palmdale, is leased to national and regional tenants including Ashley Furniture, Michaels, BevMo!, The Coffee Bean & Tea Leaf and Pacific Dental. The center was built in 1994 and renovated in 2005, and was 90% occupied at the time of the sale.
Progression Real Estate Investments Managing Director Jim Howard said, “Sierra Commons is a well-located and attractively designed shopping center that attracts leading retailers, resulting in an investment yielding strong cash returns and long term value.”
“It’s historically been one of the best locations for retail in the Antelope Valley,” said Kent, a senior vice president at Hanley Investment Group. “Sierra Commons is ideally situated between the Antelope Valley Mall and 14 Freeway; ‘main and main’ for the entire Palmdale/Lancaster area. It’s fundamentally great real estate.”
According to Kent, it was the solid mix of credit anchors tenants of Ashley Furniture, Michaels and BevMo!, combined with an attractive assumable loan that produced a double-digit return, that motivated the buyer to acquire the center.
“The shopping center had been marketed previously over the past 7 years by three other brokers,” noted Kent. “We were able to procure a highly qualified 1031 exchange buyer that understood the leasehold characteristic of the property and was capable of assuming an existing CMBS loan with over 11 years remaining.”
“The successful sale of the property is a testament to our company’s network, relationships and ability to procure the right buyers for certain retail assets like a leasehold community shopping center such as Sierra Commons,” said Asher, the managing director at Hanley Investment Group.
In the second transaction, Hanley Investment Group represented the buyer and seller in the sale of Pacific Plaza, a 23,438-square-foot multi-tenant retail property in Torrance, Calif., for $10,650,000. Jeremy S. McChesney, a senior vice president with Hanley Investment Group, represented the buyer, Metro Properties of Los Angeles. The seller, the Holt Group, Inc. of Vancouver, WA, was represented by Hanley Investment Group’s senior vice presidents Patrick G. Kent and Kevin T. Fryman. The 2.15-acre retail center, which is located at 2382, 2390 & 2396 Crenshaw Boulevard in Torrance, includes tenants Subway, H&R Block, The UPS Store, and BB’s Beauty Nail & Spa. Pacific Plaza was built in 1992, and was 100% occupied at the time of the sale.
According to Kent, Hanley Investment Group sourced multiple all-cash buyers within the first two weeks and closed at 100% of the list price. He adds, “The closing of this multi-tenant retail property is continued evidence of the high demand for good quality retail property that is located in a major metropolitan areas.”
“It’s been a record year for Hanley Investment Group and a historic year in the industry,” Asher reported. “Even with interest rates anticipated to increase next year, demand is still outpacing supply in the marketplace, which should keep transaction volume steady and pricing from softening as quickly as it has in previous cycles.”
About Hanley Investment Group Real Estate Advisors
Built on a solid foundation of performance, integrity and dedication, Hanley Investment Group Real Estate Advisors is a boutique retail investment brokerage firm with a $4+ billion transaction track record that is comprised of innovative specialists delivering unparalleled service and superior results that consistently exceed client expectations. Hanley Investment Group’s expertise, commitment and unwavering focus of putting the clients’ needs first have continued to set the company apart in the industry. Hanley Investment Group works closely with individual investors, developers, and institutional property owners in every facet of the transaction to ensure that the highest value is achieved. Clients rely on Hanley Investment Group to be the most knowledgeable and trusted source for valuation services, market information and retail property acquisitions and dispositions. For more information, visit the Company’s website at www.hanleyinvestment.com or call (949) 585-7610