SACRAMENTO, CA—Another day, another buyer from the Bay Area. This time, the purchase was Westlake Village, a 31,980-square-foot neighborhood shopping center anchored by Walgreens and Chase Bank in North Natomas. The sale also included 4.36 acres of developable land, according to Hanley Investment Group Real Estate Advisors. The price was not disclosed.

Hanley executive vice president Bill Asher and president Ed Hanley, in conjunction with Ten-X based in Irvine, CA, represented the seller, Donahue Schriber Realty Group. The buyer, a family trust from the East Bay, was represented by Hanley Investment Group associate Eric Vu.

“Shopping centers popular with investors are those containing daily needs, Internet-resistant or service-based retailers leased to national and regional credit tenants on long-term leases,” Asher tells GlobeSt.com. “Westlake Village was appealing to investors because it had these types of tenants–drug store, bank, food, and nail and hair salons. It was also attractive due to the ability to develop an additional 4.36 acres in the future in a trade area where residential growth is scheduled to continue to expand in the near term.”

Built in 2007, the 92% occupied Walgreens-anchored property is located at 3501-3511 Del Paso Rd., at the signalized intersection of Del Paso and El Centro roads. Tenants also include Allstate Insurance, AIM Mail Center, Chase Bank, Creative Nails Spa, Donahue Schriber, Subway and Westlake Hair Studio. Hanley also noted that 100% of the complementary mix of tenants has operated at the center since 2011, providing the buyer with a reliable income stream and long-term stability.

“Westlake Village offered a unique opportunity to acquire a shopping center featuring a historical stable income stream with a value-add component to lease up the remaining available space of the existing center and future development potential of 4.36 acres within the project,” said Asher.

Vu noted that the buyer had traded out of a Northern California-based retail property to purchase Westlake Village in order to fulfill a 1031 exchange.

“Walgreens serving as the anchor tenant at the center generated a tremendous amount of activity,” commented Asher. “The market's appetite for drug store investments on long-term leases remains very active. Whether offered as a single-tenant investment or as part of a larger shopping center, investors continue to flock to the security of a national drug store's corporate-guaranteed lease and long-term daily needs products they provide to consumers in today's market.”

Investor demand for multi-tenant retail assets similar to Westlake Village will continue to be the most attractive opportunities for investors in 2018. Properties leased to national credit tenants in primary locations with an opportunity to improve cash flow through additional lease-up and future development will be the most in demand, Hanley surmises.

Donahue Schriber Realty Group is a privately held REIT with 62 shopping centers representing more than 11 million square feet of retail space throughout California, Nevada, Oregon and Washington.