Newmark Capital Markets and Paragon Commercial Group LLC have announced the sale of Rusty Leaf Plaza, a Target-anchored neighborhood shopping center located at 2512 E Chapman Ave in Orange.
The sale, which occurred within fifteen business days following execution of the purchase agreement, is the latest illustration that well-located retail shopping centers with strong anchor tenants remain in high demand notwithstanding generic retail headwinds impacting non-core retail centers.
Newmark Capital Markets Executive Managing Director CJ Osbrink exclusively represented the seller, a joint venture between the Canyon Catalyst Fund, LLC and Paragon Commercial Group, LLC, in the sale to the buyer Inland Real Estate Acquisitions, LLC.
Formerly anchored by a dark Ralphs supermarket, Rusty Leaf Plaza was purchased in 2016 by Paragon Commercial Group LLC and repositioned throughout 2017 to include one of the first small format Target stores in Orange County. In addition to Target, Rusty Leaf Plaza added a mix of complementary convenience-oriented retailers including service, medical, and fast casual dining tenants. At the time of sale, the center was 98 percent occupied with significant tenant interest in the remaining space.
“We continue to believe strongly in bricks-and-mortar neighborhood retail anchored by best-in-class tenants such as Target that have demonstrated success in adapting real-time to changing consumer shopping trends. Both the City of Orange and the tenants made this redevelopment possible by working together in an expedited manner to revitalize this shopping center for the residents of Orange,” said Erwin Bucy, Principal at Paragon Commercial Group.
“Ownership did a fantastic job of creating immediate value by replacing an older Ralphs anchor that had gone dark with a new small-format Target on a long-term lease. The center’s upgraded façade, landscaping, signage and overall design coupled with the new mix of daily-needs tenants, have re-energized this once dilapidated center to reflect the strong surrounding consumer demographics,” said Osbrink.
“Given the lack of well-located, grocery-anchored shopping centers available for sale on the West Coast, we expect to continue to see the most aggressive buyer pools and pricing in 2018 for necessity-anchored retail centers surrounded by affluent and dense demographics,” Osbink added.
About Paragon Commercial Group LLC
Paragon Commercial Group opportunistically invests into value-add acquisition and tenant-driven retail development and redevelopment opportunities. With over 80 years of collective retail experience and a retail resume in excess of 12 million square feet of neighborhood and community centers, Paragon’s deep market knowledge and tenant relationships provide a grass roots pipeline of retail investment opportunities. Paragon enters into each development with a commitment to quality that extends to each constituency involved in the development process including, investors, government agencies, lenders, property owners, tenants and clients.
About Newmark Capital Markets
Newmark Capital Markets, operated by Newmark Group, Inc., is one of the world’s leading commercial real estate advisory firms. Together with London-based partner Knight Frank and independently-owned offices, our 15,000 professionals operate from more than 400 offices in established and emerging property markets on six continents.
With roots dating back to 1929, our strong foundation makes us one of the most trusted names in commercial real estate. We provide access to a wide range of services, including asset sales, sale leasebacks, mortgage and entity-level financing, equity raising, underwriting and due diligence. The transactions we broker involve vacant land, new real estate developments and existing buildings. We specialize in arranging financing for most types of value-added commercial real estate, including land, condominium conversions, subdivisions, office, retail, industrial, multifamily, student housing, hotels, data center, healthcare, self-storage and special use. For further information, visit www.ngkf.com/capitalmarkets.
Newmark Group, Inc., which is listed on the NASDAQ Global Select Market under the symbol “NMRK”, is a publicly traded subsidiary of BGC Partners, Inc. (“BGC”), 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 “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 “BGCA”.
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