Representatives of Paragon Commercial Group LLC and Canyon Partners Real Estate LLC report that a joint venture between the two firms has acquired a 79,399-square-foot retail anchor property at 2101 West Imperial Highway in La Habra, California, from an unnamed seller for an undisclosed amount. The purchase marks the sixth investment completed by Paragon through its joint venture with the Canyon Catalyst Fund (CCF), the CalPERS real estate emerging manager program managed by Canyon, according to a release from the sources.
Located adjacent to South Beach Boulevard, the retail center comprises approximately 6 acres of land and includes surface parking and landscaping, the release says. SoCal Real Estate contacted the sources for details on the tenants in the center and was told it is 100 percent occupied by a Vons grocery store. The price remains undisclosed.
Other retailers that share the intersection with the La Habra property include Walmart, Lowe’s, Ross, Sprouts Farmers Market, Ulta, Chick-fil-A, and Wells Fargo, according to the statement, which adds that the center sits at the signalized hard corner two heavily traveled roads in a dominant retail region of the county.
Paragon’s Jim Dillavou is quoted in the release as saying, “This property is ideally located and fits our strategy to revitalize existing infill retail shopping centers and provide neighborhoods with contemporary destination-oriented shopping destinations.”
Dillavou adds in the statement that “Southern California continues to be a premier target for development and growth, creating expanded investment value-add opportunities for retail properties. We continue to see strong fundamentals and retailer performance in the Orange County retail markets, notwithstanding retail headwinds in other parts of the country.”
The release also says La Habra is one of the major suburban-office markets in Southern California and that Orange County as a whole is headquarters to numerous Fortune 500 companies. “With one of the lowest unemployment rates in the US, Orange County’s combination of affluent demographics, discretionary income, and proximity to major employment centers make it one of the most attractive investment markets in California.”
La Habra’s retail market is also strong. As SoCal Real Estate reported in March, Hanley Investment Group (HIG) arranged the sale of a new single-tenant Raising Cane’s Chicken Fingers restaurant in La Habra for $3.96 million. The sale achieved $1,222 per square foot and a 4.04 percent cap rate, an all-time record-low cap rate in the U.S. for this brand, according to CoStar, as reported by a representative of HIG.