Sales Show Strong Demand for Retail Properties

In the two Menifee sales, Hanley reports that Lew 1st–Crenshaw Properties LLC of Glendale bought both of the properties from the center's developer, Costa Mesa-based Donahue Schriber Realty Group, for a total of nearly $5.29 million. Edward B. Hanley and William B. Asher of Hanley Investment Group negotiated two separate all-cash 1031 exchange deals totaling on behalf of the seller; the buyer was represented by James Kwon of Coldwell Banker Best Realty in Fullerton.

[IMGCAP(2)]The Wells Fargo building is at 30186 Haun Rd. in the Countryside Marketplace center and was built in 2008. It is a 5,250-square-foot, free-standing building situated on slightly more than a half acre. The Red Robin is at 30142 Haun Rd. and was also built in 2008. It is a 6,050-square-foot free-standing building situated on a 1.37-acre parcel.

Hanley says that the deals illustrate that demand for single-tenant NNN investments "continues to be extremely strong." He adds, "There is a lack of quality single-tenant NNN properties on the market right now in Southern California. When they do come to market, they are transacting quickly with all-cash buyers."

Hanley says that the deals in Menifee, and the others that the company has closed lately, also illustrate that the market for single-tenant and multi-tenant retail properties priced under $5 million is very active right now. "With a lack of product currently on the market, demand continues to increase from buyers seeking retail investment properties across the Western United States," he says Hanley.

In one of the other deals, Commerce, CA-based 99 Cents Only Inc. bought a 27,300-square-foot shopping center at 1125-1175 East Charleston Blvd. in Las Vegas from Family Place Station LLC of Salt Lake City for $4.83 million. Both the buyer and the seller were represented by Hanley and Eric P. Wohl of Hanley Investment Group. Known as Family Place, the four-tenant shopping center is situated on a 1.97-acre parcel, was built in 2003 and was 100% occupied at the time of sale.

Hanley and Wohl also represented the seller in the sale of Walnut Newport Center, a 9,597-square-foot multi-tenant retail center at 13842 Newport Ave. in the Orange County city of Tustin. The Lee Family Trust of Orange County acquired the center from Westwood Financial of Los Angeles in an all-cash deal. The four-tenant strip center is situated on a .74-acre parcel, was built in 1986 and was 100% occupied at the time of sale. The buyer was represented by Chuck Hathoot of Prudential California Realty in Laguna Niguel.