Hanley Markets Three Retail Centers for $112M

IRVINE, CA-Locally based Hanley Investment Group has been tapped to market three shopping centers owned by DSB Properties Inc. totaling more than 507,000 square feet that are being offered for an aggregate of $112 million. The three are the 336,055-square-foot Moorpark Marketplace at 800-888 New Los Angeles Ave. in Moorpark, which is being offered at $43 million; the 96,959-square-foot Gateway Village at 3560-3670 Grand Ave. in Chino Hills at an asking price of $37.5 million and the 74,415-square-foot Tesoro Village at 23820-23892 W. Copper Hill Dr. in Valencia at an asking price of $31.5 million.

Edward B. Hanley, president of Hanley Investment Group Real Estate Advisors, comments that, "Rarely does the opportunity present itself to purchase three such high-quality shopping centers in Southern California." The centers have already generated significant investor interest, he says.

Moorpark Marketplace, built in 2003, is situated on 18.6 acres and is 97% occupied, with approximately 95% of the offering square footage leased to national credit tenants. The tenant roster includes Kohl’s, Smart & Final Extra, TJ Maxx, Michaels, Famous Footwear, Baja Fresh, Denny’s, Del Taco, GNC, It’s A Grind, Jamba Juice, Panda Express and Verizon Wireless.

Gateway Village, built in three phases between 2003 and 2006, is an eight-building center situated on 13.86 acres and is 91% occupied. Approximately 85% of the total property’s square footage is leased by national and regional credit tenants, including Henry’s Market (Wild Oats Market Inc.), Baja Fresh, Bank of America, Biola University, Chevron, Chick-Fil-A, Chili’s, Coffee Bean & Tea Leaf, Edward Jones, Enterprise Rent-a-Car, Great Clips, Jamba Juice, Liberty Mutual Insurance, Lindora, Pacific Dental, Pizza Hut, See’s Candy and T-Mobile.

Tesoro Village, built in 2005, is situated on 7.5 acres in the master-planned community of Valencia in the City of Santa Clarita. Approximately 87% of the total property’s square footage is leased to national credit tenants that include Albertsons, Bank of America, Great Clips, H&R Block, Pick Up Sticks, RedBrick Pizza, Starbucks Coffee and The UPS Store.

Hanley, whose firm has sold seven shopping centers totaling over $40 million and more than 250,000 square feet in the last two months, observes that, “The retail investment marketplace in Southern California has seen a flurry of activity in the past several months, causing some excitement in what has otherwise been a very quiet year." In addition to a few high-profile bank-owned properties, he adds, "We have also seen more equity sellers begin to come to the market with institutional quality shopping centers."

Hanley's outlook: "Although the market fundamentals for retail properties still have some time left to completely recover, look for retail investment sales activity to increase as investors begin to tire of waiting for the avalanche of distressed opportunities that have failed to materialize."