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11/11/15
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A 44.1k sf property leased to Orchard Supply Hardware in the OC city of Buena Park sold for $15.75 mil ($357/sf). The building is located at 8030 Dale St, west of I-5 at La Palma Ave.
Orchard Supply Hardware, which plans to open later this year, signed a new, 20-year, triple net lease, guaranteed by Lowe’s Companies Inc, to fully occupy the building. Situated on 3.9 acres, the property includes a 198 stall in-front parking field, with a parking ratio of 4.5 spaces per 1,000 square feet
Dan Riley, Arthur R. Flores and Austin Wolitarsky of CBRE represented the buyer, an unnamed private investor, and the seller, Village Properties. CBRE’s Barclay Harty was the leasing agent at the time of sale.
The transaction’s 4.20 percent capitalization rate or return on the investment was among the lowest for this type of property in the area, signifying the immense demand for high-quality, fully-leased retail space in the region, according to Riley.
“This deal generated over 150 Offering Memoranda downloads and 15 competitive offers within the first two weeks of our marketing campaign,” said Riley. “The competitive nature of the offers is indicative of the many single tenant net lease investors in the market looking for quality safe investments. It also signifies bidders’ willingness to get the deal with aggressive purchase terms, such as this buyer who closed escrow in less than 30 days.”
Located on the southeast corner of Dale St and La Palma Ave, the building is adjacent to Buena Park Downtown, a 1.1 msf regional mall, with a traffic count of more than 36,800 cars per day. The immediate trade area receives nearly seven million visitors annually, with more than 657,800 residents within a five-mile radius. The building has immediate access to Knott’s Berry Farm and the 5 and 91 freeways.
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