Orange County’s Yorba Crossings, a prime retail property located at 21430-21580 Yorba Linda Blvd. in Yorba Linda, Calif., has hit the market at $24,800,000, or just over $595 per square foot. The property spans 41,646 square feet and is marketed through the Faris Lee Investments team led by Shaun Riley, Jeff Conover, and Don MacLellan.
The asset represents a rare opportunity to purchase a dominant grocery-anchored center with strong customer dynamics. The property has strong customer visits, a stable income stream and long-term historical occupancies. 65 percent of tenants in the property have held leases there for at least 7 years. The center is also is strategically positioned as the only grocery-anchored shopping center serving the affluent communities of Bryant Ranch and Hidden Hills.
One of the attractive opportunities for potential buyers is the financing options that are available. Buyers can assume the existing loan at a below-market interest rate with less than a 25 percent down payment or obtain new debt. The property also offers strong income growth, with nearly 75 percent of leases having annual rent increases. The net operating income on the asset comes at just over $1.4 million, with a cap rate of 5.73 percent.
Yorba Crossings is comprised of three separate parcels, which allow for break-up potential to maximize return on investment and optimal asset allocation. The highly affluent trade area and well-educated population within a master-planned community make it an attractive investment opportunity. According to the offering document, household income averages around $164,000 within the trade area. Over half of the residents have a bachelor’s degree or higher, one of the highest education levels across Southern California.
Additionally, the supply-constrained market with high barriers to entry and extremely high retail occupancy make it a highly desirable location.
The diverse tenant mix provides a convenient shopping experience with grocery, dining, fuel, banking, health, real estate, and fitness. The property is also located in a strong retail trade area, featuring top retailers such as Costco, Home Depot, Target, Hobby Lobby, Nordstrom Rack, Kohl’s, Best Buy, Dick’s Sporting Goods, Michael’s, PetSmart, and Ashley Home Store.
The center is also going through an approval process to upgrade the signage and paint throughout the property. According to the marketing documents, image enhancement is expected to attract higher profile tenancy to the center.
