Watt Companies has sold Edinger Plaza in Huntington Beach, California, to Stockbridge, according to a release from a representative of CBRE, which completed the transaction. No sales price was revealed in the release, but local news sources report that the amount was $65 million; an offering memorandum shows that the offering price was nearly $68.6 million.
The rep also tells SoCal Real Estate that the sale of Edinger Plaza marks the highest-priced retail property to trade hands in Orange County so far this year and that the previous record holder of this distinction in terms of total sales price was Bristol Center in Santa Ana, California, which, as we reported in June, sold for $46.5 million and was also completed by CBRE’s National Retail Partners-West (NRP-West) team.
Edinger Plaza is described in the statement as a 155,275-square-foot power shopping center that is 99 percent leased to tenants including Nordstrom Rack, Dick’s Sporting Goods, PetSmart, and Michaels. The release says Watt Companies originally developed the property in 1976 and significantly redeveloped it in 2012. The center is situated on 13.46 acres at 7490-7664 Edinger Avenue, between Gothard Street and Beach Boulevard.
CBRE EVP Philip D. Voorhees of the firm’s NRP-West team, along with experts Megan Wood, Jimmy Slusher, and Sean Heitzler, represented the seller as well as the Stockbridge, which purchased the property on behalf of its Smart Markets Fund, an open-end core vehicle, according to the release.
Voorhees is quoted in the statement as saying, “Edinger Plaza enjoys one of the best retail locations in Orange County, across the street from Bella Terra and with proximity to Costco and hundreds of residential units. All the project’s anchor tenants produce strong if not exceptional sales volumes.”
Slusher adds, “With this acquisition, Stockbridge acquired one of Huntington Beach’s dominant shopping centers in a dynamic, affluent, infill coastal trade area. Investments in Huntington Beach should outperform for investors in all market conditions.”
According to Heitzler in the release, CBRE’s marketing efforts produced more than 409 confidentiality agreement/offering memoranda distributed and through the team’s “managed-bid” offer process, generated multiple offers to purchase the property.
Wood adds, “The strong competition to acquire Edinger Plaza demonstrates investors’ preference to own top-quality assets with seasoned, high credit, high-performing tenancy, even without a grocer as an anchor.”
According to the statement, with this closing, CBRE’s NRP-West team topped $10.9 billion in closed retail investment sale transactions. Other notable NRP-West team California listings include Outlets at the Border in San Ysidro, listed for sale for $56 million Market Place at Oxnard in Oxnard, listed for sale for $40.3 million; and Anaheim Towne Center in Anaheim, listed for sale for $15.2 million.