Hanley Investment Group Real Estate Advisors has announced that it has arranged the sale of Sierra del Oro Towne Centre, a 100%-occupied, 110,485-square-foot shopping center anchored by Ralphs and Dollar Tree in Corona, California. The sale price was not disclosed.
Sierra del Oro Towne Centre is Hanley Investment Group’s sixth grocery-anchored shopping center sale over the last 12 months.
Hanley Investment Group executive vice president Kevin Fryman and president Ed Hanley represented the seller, Phillips Edison & Company, Inc., one of the nation’s largest owners and operators of grocery-anchored neighborhood shopping centers. The buyer, a private 1031 exchange investor based in Northern California, was represented by Jesse Millman of Newmark.
In 2017, Hanley Investment Group represented the seller, Cornerstone Development Partners of Irvine, in the sale of Sierra del Oro Towne Centre, when Phillips Edison & Company was the buyer.
“We secured a private all-cash 1031 exchange buyer who had recently sold their property to a land developer,” said Fryman. “We negotiated an expedited due diligence and closing timeline to provide the seller with certainty of execution.”
Fryman added, “Prior to marketing the property for sale, we advised the seller to structure a new long-term lease with Ralphs to maximize value and align with private capital’s objective of having a strong, committed anchor at the center.”
In addition to Ralphs and Dollar Tree, tenants at Sierra del Oro Towne Centre include Anytime Fitness, Chase Bank, Jack in the Box, Domino’s Pizza, Wingstop, Green River Montessori, Kumon Math and Reading Center, Fantastic Sams and PostalAnnex.
According to Fryman, 72% of the tenants have operated at the center since at least 2011, and 70% are national or regional brands.
“The sale of Sierra del Oro represented a unique opportunity to acquire an entire grocery-anchored shopping center, including the anchors, shop tenants, and pad building ground leases in an affluent market located in Southern California,” said Fryman. “Ralphs has operated at the shopping center since it was originally constructed in 1991 and had recently executed a new long-term lease, demonstrating their commitment to the location. Furthermore, Ralphs is the only traditional grocery store within a three-mile radius.”
“Investor demand for grocery-anchored retail centers remains exceptionally strong, driven by the stability and daily traffic that grocers like Ralphs generate,” said Hanley. “Both private and institutional buyers continue to target these assets for their long-term income durability and resistance to e-commerce disruption. With consistent foot traffic, strong tenant fundamentals, and limited new supply in high-growth markets, grocery-anchored centers offer a compelling investment profile.”
Information for this article was sourced from Hanley Investment Group.
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