Retail Developer Buys Tustin Parcel

TUSTIN, CA-A shopping center developer has purchased a .54-acre parcel in Tustin and plans to build a retail complex on it.

Makena Capital has paid nearly $1 million for the parcel, which is located at 13931 Redhill Ave. The developer plans to build a 6,800-sf retail facility here, with completion slated for April 2002, says Blake Woodward, who worked on the deal. Starbucks Coffee and Subway have already been secured as tenants for the building, which will also house a dry cleaner’s shop and other retail establishments.

Makena Capital was represented by Woodward and Andrew Buie of CB Richard Ellis’ Anaheim office.

Although still holding steady, the Orange County’s retail sector may face some challenges in the months ahead, according to a recent report by Marcus & Millichap Real Estate Investment Brokerage Co. Rents are expected to level off from last year’s highs, due to an abundance of space coming onto the market and the slowdown in the economy, the report says. Meanwhile, the overall vacancy rate, which currently stands at 5.3%, is expected to slowly start to increase to 6%.