IRVINE, CA—A private Southern California-based investment group that is selling The Shoppes at Chino Hills in Chino Hills, CA, expects to fetch close to $150 million for the trophy asset, Ryan Gallagher, senior managing director of HFF here, tells GlobeSt.com. Gallagher, along with managing director Bryan Ley and associate director CJ Osbrink, is marketing the 338,000-square-foot retail property. The firm also handled its prior sale in 2010 from a bank consortium group led by Bank of America to the current owner.
As GlobeSt.com reported in August 2013, PM Realty Group has provided third-party leasing and operations for the center since original developer Opus West filed bankruptcy in 2008. PMRG was retained by Bank of America as the center was put up for sale and was asked to stay on by new ownership, a family trust that purchased the center in spring 2010. Due to the Opus bankruptcy and downturn, the center got off to a rough start, but, as GlobeSt.com reported in May 2013, has seen a strong comeback with many months of increased sales.
Located at 13800-13920 Village Center Dr., the 94%-leased property is part of a larger master-planned project that includes the Chino Hills Civic Center, Chino Hills City Hall, Chino Hills Police Station and the public library. The center is anchored by XXI Forever, H&M, Trader Joe's, Banana Republic, Victoria's Secret and Barnes & Noble.
Regarding why the owner decided to sell at this point, Gallagher tells GlobeSt.com, “There is a significant appetite right now in Southern California for trophy projects, and the ownership of this property recognizes that. They feel that it is a good time in the market to take advantage of the low interest rates and this appetite. They ended up buying it at a really good time in 2010, after the property had been stabilized. Private investors don't necessarily have a set hold period for their properties; they sell when it makes sense for them to do so, usually in order to recognize some gains due to market conditions.”
Gallagher adds that there has been a significant amount of interest in The Shoppes from national, institutional investors, high-net-worth investors “and frankly, even foreign capital.”
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Carrie Rossenfeld
Carrie Rossenfeld is a reporter for the San Diego and Orange County markets on GlobeSt.com and a contributor to Real Estate Forum. She was a trade-magazine and newsletter editor in New York City before moving to Southern California to become a freelance writer and editor for magazines, books and websites. Rossenfeld has written extensively on topics including commercial real estate, running a medical practice, intellectual-property licensing and giftware. She has edited books about profiting from real estate and has ghostwritten a book about starting a home-based business.
