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| Ed Hanley |
CORONA DEL MAR, CA –
Hanley Investment Group Real Estate Advisors, a nationally-recognized real
estate brokerage and advisory firm specializing in investment property sales,
announced the firm arranged the sale of Arcadia
Gateway Center, a 156,046-square-foot, mixed-use commercial center
comprised of retail, medical and office buildings in Arcadia, Calif.
The sale price was
$62,081,611, representing a cap rate of 5.45 percent.
Hanley Investment Group
President Ed Hanley, Executive Vice
President Pat Kent, along with
Senior Associate Corey Olson,
represented the sellers, Arcadia Gateway Centre Delaware Partners, LLC and Post
Exchange, LLC.
The buyer, JLJ (USA)
Investment, LLC of City of Industry, Calif., was represented by Henry Hong, senior vice president with
Lee & Associates in the City of Industry, Calif.
Built in 1988 on 7.90
acres, Arcadia Gateway Center is located at 300-450 East Huntington Drive, at
the southwest corner of Huntington Drive and 5th Avenue in the city of Arcadia
in Los Angeles County.
The five-building complex
is situated just off the Huntington Drive exit of the 210 Freeway at the
entrance to Arcadia and benefits from approximately 900+ feet of frontage along
Huntington Drive, which is the main east-west commercial thoroughfare in the
immediate trade area.
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| Pat Kent |
“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,” said Hanley.
“Our team developed a best
and final pricing strategy and, using our proprietary investor and broker
database, we were able to generate seven qualified offers from primarily
private investors very near the marketing price.”
According to Kent, the
retail component, which is 91 percent leased, features a 43,578-square-foot
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 48,455-square-foot 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 64,013-square-foot 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.
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| Arcadia Gateway Center, Arcadia, CA |
“The property offered the
buyer instant diversification with the total net-operating income allocated as
approximately 32 percent from retail, 28 percent from medical and 34 percent
from office,” said Kent.
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.
Arcadia Gateway Center is
situated in a densely-populated and affluent area. There are more than 150,000
people within a three-mile radius of the property earning an average household
income in excess of $95,000.
“The property also
benefits from being well-located in this established office corridor with
excellent daytime population,” said Kent. “There are currently one million
square feet of existing office space (and 99% occupancy) within a two-block
radius of Arcadia Gateway Center, which substantiates a high daytime population
and demonstrates strong office and retail demand in the immediate 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 closest light-rail transit station is located
within walking distance just two blocks northwest of the property.
For a complete copy of the company’s news
release, please contact:
Anne Monaghan
MONAGHAN COMMUNICATIONS,
INC.
830.997.0963
