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2/27/17
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Arcadia Gateway Center, a 156k sf, mixed-use center in the San Gabriel Valley city of Arcadia, traded hands in a recent $62.1 mil ($398/sf) transaction. The center, comprised of retail, medical and office buildings, was acquired by JLJ (USA) Investment LLC, out of the City of Industry.
Built in 1988 on 7.90 acres, Arcadia Gateway Center is located at 300-450 East Huntington Dr, at the southwest corner of Huntington and 5th Ave. The five-building complex is situated just off the Huntington Dr exit of the 210 Fwy at the entrance to Arcadia.
The property benefits from approximately 900+ feet of frontage along Huntington Drive, which is the main east-west commercial thoroughfare in the immediate trade area. Arcadia Gateway Center is also located immediately adjacent to the Metro Gold Line, which supplies light-rail service connections from Downtown Los Angeles, up north to Pasadena, and as far east as Montclair.
The retail component, which is 91 percent leased, features a 43.6k sf, single-story multi-tenant building and two freestanding restaurant pad buildings leased to BJ’s Restaurant and Brewhouse and Olive Garden. The multi-tenant retail center includes Men’s Wearhouse, Leslie’s Pool Supplies, Scottrade, Starbucks and Togo’s.
The property also features a 48.5k sf, two-story medical office building which is 100 percent leased to HealthCarePartners with a corporate signature guaranteed by DaVita and nine plus years remaining on the lease term; and a 64k sf, four-story multi-tenant office building, which is also 100 percent leased. The office building’s second, third and fourth floors are fully leased to HealthCare Partners, Oracle America and Regus, respectively, and the ground floor is leased to a synergistic mix of medical and service-oriented tenants.
Ed Hanley, Pat Kent and Corey Olson with Hanley Investment Group represented the sellers, Arcadia Gateway Centre Delaware Partners LLC and Post Exchange LLC. The buyer was repped by Henry Hong with Lee & Associates. The transaction closed at a cap rate of 5.45%.
Hanley noted, “This is a prime, irreplaceable southern California location with strong historical tenants and 98 percent occupancy, situated near the heavily-trafficked 210 Freeway exit with 265,000+ cars per day.” According to Hanley, they were able to generate seven qualified offers from primarily private investors very near the marketing price.
According to Kent, with the exception of Regus and Oracle America, who signed 10-year lease agreements in 2016 and 2013 respectively, 90 percent of the current tenants have occupied space at the property for more than five years and 73 percent of the current tenants have occupied space at the property for more than 10 years. Approximately 75 percent of the existing tenancy is not scheduled to mature until 2019 or later.
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