Fund Adviser Pays $17M for Showrooms

SANTA ANA, CA-A pension fund adviser based in San Diego has paid $17.2 million for the four-building, 85,363-sf Brookhollow Showroom Retail Center, according to Grubb & Ellis. The San Diego buyer acquired the property, which is at 1540 E. Warner Ave., from CCA Acquisition Co. of Los Angeles.Dixie Walker of the Newport Beach office of Grubb & Ellis tells GlobeSt.com that one appeal of the asset for the buyer, in addition to the property's being 100% leased, is that the project occupies 864 feet of frontage along the 55 Freeway and it has historically been occupied by strong national and regional retailers."The freeway exposure and visibility at this center are probably better than they are at any freeway center I've seen," Walker tells GlobeSt.com. "You cannot miss it driving by in either direction." In addition, he says, every tenant in the center has freeway visibility, not just some of the tenants as in many other centers.Retail showrooms trade relatively rarely, according to Walker, who says that the owners usually generate such a strong and dependable cash flow that they rarely want to sell. "Especially in the case of owners who have held these centers for a long time, they are generating very strong cash flow because the replacement tenants coming in are almost always willing to pay higher rents," Walker says.Walker and Charley Simpson of Grubb & Ellis' Newport Beach office represented the seller, with the buying entity representing itself. The showroom center, which was built in the 1980s, is within the Brookhollow Office Park at the southwest corner of Warner Avenue and the 55 Freeway. Tenants include Plummers, Adair Office Furniture, Howard's Appliances, Sit 'N Sleep and The Kids' Room.