Hanley Investment Group Arranges Sale of High-Profile Shopping Center Anchored by Target 1/2 Mile From South Coast Plaza for $36.5 Million

June 08 08:36 2023
Hanley Investment Group Arranges Sale of High-Profile Shopping Center Anchored by Target 1/2 Mile From South Coast Plaza for $36.5 Million
At the time of the sale, Bristol Place was the only shopping center to sell above $20 million in Orange County since October 2022.

SANTA ANA, Calif. – 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 recently completed the sale of Bristol Place, a 61,454-square-foot multi-tenant shopping center shadow-anchored by Target in Orange County, California’s South Coast Metro, a half-mile from the world-renowned South Coast Plaza. The sale price was $36.5 million.

Hanley Investment Group’s Executive Vice Presidents Matt Burnett and Kevin Fryman, along with President Ed Hanley, represented the seller, an affiliate of Cadence Capital Investments of Greenwood Village, Colorado and Oakwood Real Estate Partners, LLC. The buyer, a private investor based in Newport Beach, California, was represented by Ron Duong of Marcus & Millichap in Irvine, California.

“We generated 13 qualified offers from private and institutional investors,” Fryman said. “To provide surety of closing in this volatile debt environment, we negotiated that the buyer would waive their contingencies before the loan approval.”

Fryman notes, “The sale of Bristol Place was a generational asset with strong investment fundamentals and, at the time of the sale, represented the only shopping center to sell above $20 million in Orange County since October 2022.”

Bristol Place is located at 3310-3398 South Bristol Street and was built in 1968 and renovated in 2019. The shopping center sits on 5.04 acres and was 89% occupied at the time of the sale. The shops to Target property feature a dynamic mix of e-commerce and pandemic-resistant tenants – a majority of the center is occupied by food and service-related tenants, widely regarded as robust and internet resistant.

According to Fryman, Target owns its parcel and renovated the store in 2018, demonstrating its strong commitment to the location. “Additionally, Bristol Place captures the high-traffic benefit of Target while preserving the overall rental growth potential that would otherwise be limited if Target was to dominate the subject property rent roll with unfavorable terms and minimal fixed rent increases.”

Fryman continues, “Bristol Place had a value-add component that was also attractive to investors. At 89% occupancy, there was an opportunity to increase cash flow, including converting spaces to quick-serve food uses at higher rents. Additionally, the parking ratio of 4.75 per 1,000 square feet provides excess parking over other local parking requirements and the flexibility to accommodate more parking-intensive uses such as additional quick-serve food restaurants.”

In 2019, the shopping center underwent a $4.6 million remodel to accommodate additional restaurant uses, including constructing a large outdoor patio area, providing additional power, new HVAC units, new storefronts and new roofs.

“Bristol Place offered investors a prime location in a booming, affluent trade area at the corner of Alton Avenue and Bristol Street, one of Orange County’s premier thoroughfares,” said Fryman. “There are more than 215,000 people within three miles of the property with an average household income exceeding $100,000. Additionally, Bristol Place is located a half mile from South Coast Plaza, the highest-grossing shopping center in the United States with over $1.5 billion in annual sales.”

Bristol Place is situated one block from Related Bristol, a mixed-use development that will include 3,750 apartments, 200 senior housing units, 350,000 square feet of offices, shops and restaurants, and a 250-room hotel, scheduled to commence construction in 2026. It is also a half mile from The Segerstrom Center for the Arts, one of Southern California’s premier art centers, home to Segerstrom Hall, Samueli Theatre, the Orange County Museum of Art, and the South Coast Repertory.

The property is also one mile from the intersection of Interstate 405, 55 and 73 freeways, and 1.5 miles from John Wayne Airport, Orange County’s only commercial airport.

In mid-January of 2023, Hanley Investment Group arranged the sale of El Dorado Shopping Center, a 74,500-square-foot shopping center anchored by Grocery Outlet and Dollar Tree in Long Beach, California. The sale price was $21.25 million. In Simi Valley, California, in late December 2022, Hanley Investment Group completed the sale of Simi Valley Promenade, an 82,366-square-foot shopping center anchored by Smart & Final in Ventura County. The sale price was $19.55 million.

“Although rising interest rates continue to put pressure on cap rates, those properties with the best tenant mix in the best locations have been less impacted. It is all down to real estate fundamentals – the location, the tenants and the lease terms,” Fryman said. 

About Hanley Investment Group

Hanley Investment Group Real Estate Advisors is a real estate brokerage and advisory services company with over a $10 billion transaction track record that specializes in the sale of retail properties nationwide. Our expertise, proven track record, and unwavering dedication to putting clients’ needs first set us apart in the industry. Hanley Investment Group creates value by delivering exceptional results through the use of property-specific marketing strategies, cutting-edge technology, and local market knowledge. Our nationwide relationships with investors, developers, institutions, franchisees, brokers, and 1031 exchange buyers are unparalleled in the industry, translating into maximum exposure and pricing for each property. With unmatched service, Hanley Investment Group has redefined the experience of selling retail investment properties. For more information, visit www.hanleyinvestment.com.

Media Contact
Company Name: Hanley Investment Group Real Estate Advisors
Contact Person: Kevin Fryman, Executive Vice President
Email: Send Email
Phone: 949.585.7674
Address:3500 East Coast Highway, Suite 100
City: Corona del Mar
State: California
Country: United States
Website: https://hanleyinvestmentgroup.com/

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