YORBA LINDA, CA-A 1031 exchange buyer based in Arcadia has acquired the 89,692-sf Bryant Ranch Shopping Center at 23621-23741 E. La Palma Ave. from Newport Beach-based Bryant Ranch Partners for nearly $21.9 million. The buyer, First Duarte Bryant Ranch LLC, won out in bidding with 17 other prospective buyers for a retail center featuring an unusual anchor tenant that presented a challenge for brokers marketing the deal.

According to Shaun Riley, director of advisory services for Irvine-based Faris Lee Investments and the seller’s representative, the marketing challenge was unusual even though the center was fully occupied at the time of the sale. The property is anchored by a tenant called the Ice Palace that is not a traditional anchor.

Riley explains that the Yorba Linda Ice Palace is subleasing the Ralph’s (Kroger) anchor space. He says that since the Ice Palace is not a traditional retail anchor, it is expected that the property will be repositioned in the future.

Faris Lee was faced with the challenge of identifying potential buyers who would understand the property’s value-added potential through bringing the below-market rents up to current rates, as well as signing new tenants, Riley says. The Irvine-based brokerage thus targeted 1031 exchange buyers who understood the strong dynamics of the Orange County retail property market.

“Our challenge was to educate buyers on how to handle the upcoming re-tenanting of the anchor which could eventually change the tenant makeup of the entire center,” Riley says. Among the points that Faris Lee emphasized to buyers is that Yorba Linda’s retail vacancy rate is approximately 2% and the demographics in the local trade area offer high annual household incomes, averaging $143,000.

The center, which sits on a site of more than 9.4 acres, is leased by a diverse tenant mix including dental, home improvement, food, child care, tutoring, professional services business, a fitness center and others. Its location is just off the 91 Freeway on the northeast corner of East La Palma Avenue and Via Lomas De Yorba Street.

Riley adds that Bryant Ranch Shopping Center also benefits from its location near Savi Ranch Power Center, a 500,000-sf property that features Best Buy, Costco, Home Depot, Kohls, Staples, PetsMart, TGI Fridays, Olive Garden, El Torito and many others. Buyer First Duarte was represented by Stephanie Liang of Century 21 E-N Realty. First Duarte assumed an existing loan on the property, which sold at a 6.5% cap rate.

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