GARDEN GROVE, CA—An Orange County-based private investor hasmade its first commercial-property venture bybuying of Garden Grove Festival Square, a35,515-square-foot retail strip center here, fromAtherton, CA-based investment company MeredithEnterprises for $11.9 million, representing a 5.59% caprate. The center is leased to a mix of regional and local tenantsincluding Popular Community Bank, Woori AmericanBank and United Dental Group.

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CBRE's retail investmentexperts SVP Philip Voorhees, Brad Rable, Megan Read, MattBurson, Jimmy Slusher and John Readrepresented the seller, while a cooperating/selling brokerrepresented the buyer. As GlobeSt.com reported previously, the seller's team beganto market the center, which caters to the surrounding Asianpopulation here, in March. The sale price matches the asking priceof $12 million for the space, which is 72% occupied.

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Garden Grove Festival Square is located at 10120-10130Garden Grove Blvd. and Brookhurst St. and sits on a3.1-acre site directly across from the BrookhurstTriangle, a planned 600-unit residentialdevelopment that will also have a small retail component. Thecorner Popular Community Bank pad was built in 1967, and in 2006the remaining center was built.

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According to Voorhees and Rable, the CBRE team's marketingsystem distributed more than 447 offering memoranda to investorsand brokers, and through the team's “managed bid” offer process,generated more than nine offers to purchase the property. “The lowcap rate based on 72% occupancy demonstrated the project's qualityand the buyer's belief in Garden Grove Festival Square's locationand long-term potential,” says Voorhees. “The area around theproperty is in transition from predominantly Korean to anincreasingly Vietnamese trade area. The purchaser owns close to 30properties proximate to Garden Grove Festival Square and plans toreposition the asset leveraging his deep relationships within thecommunity.”

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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.