[IMGCAP(1)]
LAGUNA HILLS, CA-Heslin Holdings recently purchased Oceanside Plaza in Oceanside, CA, as a value-add play and plans to invest $100 million in value-add retail properties this year. Principal Matt Heslin tells GlobeSt.com that value-add retail has always been and continues to be a focus for the firm, and now is the time for continued investment in this sector.
“Our whole model is predicated on finding properties at a reasonable, fair price that we can add value to and put into our portfolio of properties for investors. We look for opportunistic buys, and that's primarily the model.”
When asked if $100 is a typical year's investment amount for the firm, Heslin says it's about average, “but given the last few years—especially '08, '09 and '10—it's a step up. This is becoming a much more productive cycle in which to invest our clients' cash.”
[IMGCAP(2)]
Heslin adds that his firm loves the Southwest and Northwest, particularly good, solid infill markets where densities are strong and there is a propensity of retail activity. “The properties we buy may not be fully stabilized. We don't overpay for properties, but look for value-add opportunities. They don't have to be distressed, but certainly reasonably priced. We look for opportunities to reposition and re-tenant the property and add value that way. Location is critical, as is employment stability and population growth.”
In the Northwest, Seattle and Portland hold a lot of opportunity for the firm. Other areas Heslin views as strong are Idaho, Nevada, Arizona and Colorado. Its ideal price point is between $5 million and $50 million.
For Oceanside Plaza, which was acquired from Oceanside Plaza LLC for $11.25 million, Heslin plans to “do a complete facelift and repositioning of the tenant line-up there and bring in some good-quality national and local tenants to position it as a property suitable for the tenant base that's there.”
Retail properties in Southern California are getting some investor interest lately. As GlobeSt.com reported exclusively earlier this week, Cerritos Best Plaza LLC has sold Cerritos Best Plaza, a 357,220-square-foot shopping center here, to CenterCal Properties for $61.8 million. The price equates to $173 per square foot.
© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to asset-and-logo-licensing@alm.com. For more inforrmation visit Asset & Logo Licensing.
