Newmark Grubb Knight Frank (NGKF) has completed the $8.36 million sale of two fully-occupied, two-story retail/office buildings totaling 11,526 square feet in the prestigious seaside village of Corona Del Mar, California. The transaction marks the first time the property has sold since it was built in the early 1960s.
Ian Brown, managing director with NGKF’s Newport Beach, California office represented the seller, Masters Properties, a family-owned entity that developed the property and has managed and leased it ever since. Brown also represented the buyer, 39 Beach View LK100, LLC, owned by Brad Kuish, an active local investor who paid all-cash. The closing cap rate was approximately 4% and the price per square foot was just over $734 - the highest price ever paid for a similarly-sized office/retail property in Corona Del Mar.
Located at 3800 and 3810 East Coast Highway, the property - which includes 21 parking spaces - is leased to a total of 16 tenants that include retailers, professional services, and medical office users. Several of the tenants have been at the property for 20 years or more.
“Corona Del Mar is truly a jewel of Orange County, and commercial properties rarely are placed on the market in this very affluent and exclusive community,” said Brown. “Additionally, this area has been experiencing a re-tenanting and repositioning renaissance; boutique tenants clamor for the few vacancies, creating even higher demand and price points.”
Brown added that the property was on the market just under one month and multiple offers were received. The buyer was selected based on his financial qualifications as well as his understanding of the market.
“Brad Kuish, a past colleague of mine, was a Corona Del Mar resident and knew the property well. His family frequented the local retailers and service providers located in the buildings, Brad told me ‘I’ve always liked that property but it was never available.’ So when so when the property became available Brad jumped on it. I believe that the seller was confident the asset would be in capable hands of someone who understood its history and significance to the local community,” Brown observed.
Brown is currently marketing one additional property for the Masters family that is adjacent to the Sherman Library & Gardens at 2711 E. Coast Highway. The two-story asset is fully occupied by 12 tenants, totals 13,679 square feet, and includes 28 parking spaces. Its largest tenant is Hearthstone Fireplace. The property is being offered at $10.5 million.
About Newmark Grubb Knight Frank
Newmark Grubb Knight Frank is one of the world’s leading commercial real estate advisory firms. Together with London-based partner Knight Frank and independently-owned offices, NGKF’s 12,800 professionals operate from more than 370 offices in established and emerging property markets on six continents.
With roots dating back to 1929, NGKF’s strong foundation makes it one of the most trusted names in commercial real estate. NGKF’s full-service platform comprises BGC’s real estate services segment, offering commercial real estate tenants, landlords, investors and developers a wide range of services including leasing; capital markets services, including investment sales, debt placement, appraisal, and valuation services; commercial mortgage brokerage services; as well as corporate advisory services, consulting, project and development management, and property and corporate facilities management services. For further information, visit www.ngkf.com.
NGKF is a part of BGC Partners, Inc., a leading global brokerage company servicing the financial and real estate markets. BGC’s common stock trades on the NASDAQ Global Select Market under the ticker symbol (NASDAQ: BGCP). BGC also has an outstanding bond issuance of Senior Notes due June 15, 2042, which trade on the New York Stock Exchange under the symbol (NYSE: BGCA). BGC Partners is led by Chairman and Chief Executive Officer Howard W. Lutnick. For more information, please visit http://www.bgcpartners.com.