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6/06/23
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A Newport Beach private investor purchased Bristol Place, a 61.5k sf, multi-tenant shopping center shadow-anchored by Target in Orange County’s South Coast Metro, in a $36.5 mil ($593/sf) transaction. The property was sold by an affiliate of Cadence Capital Investments of Greenwood Village, CO and Oakwood Real Estate Partners LLC.
Bristol Place, located at 3310-3398 South Bristol St, was built in 1968 and renovated in 2019. The shopping center sits on just over five acres and was 89% occupied at the time of the sale. It features a dynamic mix of e-commerce and pandemic-resistant tenants – a majority of the center is occupied by food and service-related tenants, widely regarded as robust and internet resistant.
Bristol Place is situated one block from Related Bristol, a mixed-use development that will include 3,750 apartments, 200 senior housing units, 350k sf of offices, shops and restaurants, and a 250-room hotel, scheduled to commence construction in 2026. It is also a half mile from The Segerstrom Center for the Arts, one of Southern California’s premier art centers, home to Segerstrom Hall, Samueli Theatre, the Orange County Museum of Art, and the South Coast Repertory.
The property is one mile from the intersection of Interstate 405, 55 and 73 freeways, and 1.5 miles from John Wayne Airport, Orange County’s only commercial airport. It is also a half-mile from the world-renowned South Coast Plaza.
In 2019, the shopping center underwent a $4.6 mil remodel to accommodate additional restaurant uses, including constructing a large outdoor patio area, providing additional power, new HVAC units, new storefronts and new roofs.
Hanley Investment Group’s Matt Burnett, Kevin Fryman and Ed Hanley represented the seller in the transaction. The buyer was repped by Ron Duong of Marcus & Millichap. According to Fryman, the listing generated 13 qualified offers from private and institutional investors.
Fryman notes, “The sale of Bristol Place was a generational asset with strong investment fundamentals and, at the time of the sale, represented the only shopping center to sell above $20 mil in Orange County since October 2022.”
According to Fryman, Target owns its parcel and renovated the store in 2018, demonstrating its strong commitment to the location. “Additionally, Bristol Place captures the high-traffic benefit of Target while preserving the overall rental growth potential that would otherwise be limited if Target was to dominate the subject property rent roll with unfavorable terms and minimal fixed rent increases.”
Fryman continues, “Bristol Place had a value-add component that was also attractive to investors. At 89% occupancy, there was an opportunity to increase cash flow, including converting spaces to quick-serve food uses at higher rents. Additionally, the parking ratio of 4.75 per 1,000 square feet provides excess parking over other local parking requirements and the flexibility to accommodate more parking-intensive uses such as additional quick-serve food restaurants.”
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