Phil Voorhees, Gary Stache and Pat Scruggs, all with the Private Client Group, represented both the buyer and the seller. The property, which was built in 1978, is at the southwest corner of East 17th Street and Grand Avenue and was 85% leased at the time of the sale.
The deal closed at a cap rate of approximately 5.8%. Voorhees tells GlobeSt.com that the buyers were willing to acquire the property at the relatively low cap rate, even though the center is 15% vacant, because they see upside in the turnaround potential of the property through higher rent rates when leases roll over, as well as through better management. In addition, Voorhees says, one of the buyers plans to build approximately 6,500 sf to 7,500 sf of additional space at the site, which he will fill with his real estate management business.
Santa Ana Square comprises five separate buildings of single-story, wood frame construction with major tenants including Denny's, Payless Shoes, Weinerschnitzel and Popeye's.
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