Strip Center Commands Record-Low Cap Rate

LAKE FOREST, CA—Los Angeles-based the Mayfield Trust has sold Foothill Center, a 19,400-square-foot multi-tenant shopping center here, to a China-based buyer for $7.64 million. The center is 95% occupied with tenants including Baja Fresh, Enterprise Rent-A-Car, and Wasabi Sushi. Matthew Mousavi and Patrick Luther of Faris Lee Investments represented the seller, while the buyer represented itself in the transaction. The sale price had an in-place cap rate of 4.81%, a record low for a non-anchored retail strip center sale in south Orange County, industry sources say.

WEST HOLLYWOOD, CA—Charles Dunn Co. has completed two multifamily property sales totaling $4.7 million here. The sales include a 10-unit property at 1220 N. Formosa Ave. that sold for $3.3 million and a five-unit property at 1231-1235 N. Vista St.that sold for $1.4 million. For the Formosa sale, Kimberly Roberts Stepp, senior managing director with Charles Dunn, represented the seller, Los Angeles-based Aquat 9 LLC, as well as the 1031 exchange buyer, a Los Angeles-based private investor. The transaction closed at a 4.8% cap rate and sold at full asking price. For the Vista sale, Stepp represented the seller, Los Angeles-based Jambax LLC. The buyer was a private investor from Los Angeles who was represented by Diana F. Tiao of the Collective Realty. The transaction closed at a record-low 2.9% cap rate.