Behind Greystar's Promenade Purchase

ANAHEIM, CA—Greystar Real Estate Partners believes there is an opportunity to draft off Downtown Anaheim's momentum by leasing the remaining space at the Promenade and ultimately creating a better experience for visitors and residents, the firm's senior managing director of investments Kevin Kaberna tells GlobeSt.com. As we recently reported, Greystar purchased the major mixed-use development, currently named the Promenade at Anaheim, from CIM Group. It is a prominent anchor for Center Street, which joins with the Anaheim Packing District to form the bustling Center City Anaheim or “CtrCity Anaheim,” as the area is being rebranded. We spoke exclusively with Kaberna about the purchase and the market for mixed-use properties in this area of Anaheim.

GlobeSt.com: What was particularly significant for you about the Promenade purchase?

Kaberna: This transaction represents a continuation of Greystar's strategic focus on acquiring well-located apartment communities below replacement cost in thriving markets exhibiting robust employment growth. Furthermore, Greystar recognized the area's positive momentum both the City of Anaheim and LAB Holdings have been instrumental in creating via the Packing House and the numerous new shops and restaurants along Center St.

GlobeSt.com: What is the market for mixed-use properties like in Anaheim?

Kaberna: Historically, Orange County is a very thinly traded institutional-apartment market. As it relates specifically to mixed-use communities similar to the Promenade, less than a handful of mixed-use assets have traded hands in Orange County over the last decade.

When the property was acquired in April, the residential component was stabilized, but the retail was not. Greystar believes there is an opportunity to draft off the area's momentum by leasing the remaining space and ultimately creating a better experience for both the visitors to Downtown Anaheim and the residents at the Promenade.

GlobeSt.com: What do you look for in the properties you purchase?

Kaberna: Greystar targets well-located properties in strong markets that can benefit from Greystar's comprehensive investment-management, operations and capital-projects expertise. As a fully integrated real estate group and the largest apartment manager in the country, Greystar is able to leverage its local-market expertise and benefit from its scale as a national operator, investor and developer of apartment communities.

GlobeSt.com: What else should our readers know about this property or the transaction?

Kaberna: Greystar plans to invest in the residential-unit interiors and common-area amenities, including a new gym space and construction of a pool for the residents. Furthermore, one of the most exciting aspects of this opportunity is our vision for the property's ground-floor retail space. We plan on investing a significant amount of capital to enhance the property's retail storefronts and curb appeal, and in doing so, create a first-rate retail environment that will continue the positive transformation already taking place along Center St. and in the surrounding CtrCity Anaheim neighborhood.