Brea Imperial Shopping Center sold at one of the lowest cap rates this year
Los Angeles – November 15, 2016 – CBRE Group Inc. announced the sale of Brea Imperial Shopping Center in the city of Brea, California, for $21.06 million to an Orange County-based partnership. The 4.95 percent cap rate was among the lowest in the county this year for a strip center.CBRE’s First Vice President Arthur R. Flores represented the seller, a family also based in Orange County. The buyer, represented by Henry Hong of Lee & Associates, intends to reposition and remodel the 43,243-square-foot center.
“Brea Imperial Center was only 75 percent occupied at the time of sale, appealing to savvy investors who understood the excellent real estate fundamentals of the asset, the strong trade area demographics and the exceptional retail location,” said Flores.
Brea Imperial Shopping, which includes such tenants as Bank of the West, Carl’s Jr., Active Ride Shop, and Alexander’s Hair Salon, was originally developed in 1980 and remodeled in 1993. It sits on a 5-acre site located at the southwest corner of Imperial Highway and State College Boulevard with 84,000 cars per day passing by.
“The buyer expects to implement an extensive remodel and re-merchandising plan, which will include higher-end food and service tenants that will both drive traffic to the center and cater to the high-income demographics in the city of Brea,” said Flores.
The Brea Imperial Center deal generated a substantial amount of investor activity and resulted in seven offers within the first two weeks of marketing the property. CBRE’s systematic marketing approach boosted the ultimate purchase price by more than $1 million above the original list price, reflecting the great demand for well-positioned retail properties in desirable locations in Orange County.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2015 revenue). The Company has more than 70,000 employees (excluding affiliates), and serves real estate investors and occupiers through more than 400 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
