Recent transactions are showing strength in Orange County’s retail market. In one such transaction, a 205,000 square-foot single-tenant retail property in Anaheim Hills was sold for $53 million, or approximately $258 per square foot. The sale was announced by CBRE National Retail Partners, who arranged the transaction on behalf of The Home Depot, which sold the property.The buyer is a foreign institutional investor, which CBRE did not disclose.
Located at 1095 N. Pullman Street, the property is currently occupied by The Home Depot. Public records show that the home improvement retailer last purchased the property in 2016 for $15 million.
The Home Depot was founded in 1979 in Atlanta, Georgia, with its first two stores beginning at 60,000 square feet each. Now, the company’s 2,300 stores span the U.S., Canada and Mexico with approximately 500,000 employees. On average, The Home Depot stores total approximately 105,000 square feet, according to the retailer’s website.
The Anaheim Hills location is located along the Santa Ana River and is in close proximity to several other retailers, including Vons, Target and Costco, among many others. It is also easily accessible by State Road 91.
Overall, Orange County’s retail market is seeing strong signs of improvement. According to a third quarter retail market report from CBRE, Orange County’s vacancy rate fell approximately 20 basis points quarter-over-quarter to 4.7 percent. Additionally, the report showed that Orange County’s retail market currently makes up for two percent of the U.S.’ total retail sales. By the third quarter of 2021, total retail sales had grown by 4.6 percent year-over-year in the region, and CBRE estimates they will total $50.8 billion by the end of 2021. Over the next five years, CBRE also predicts Orange County’s retail sales will increase 2.4 percent over the next five years.
CBRE did not respond to requests for comment.
