Shopping Center Fronting Pacific Coast Highway Sells for $17 Millionadmin
A partnership controlled by the NFL’s Los Angeles Rams owner Stan Kroenke paid $17.1 million for Village Plaza at Huntington Harbour, a small retail center with prime footage along the Pacific Coast Highway in Huntington Beach, California.
The Kroenke Group, based in Columbia, Missouri, bought the 20,328-square-foot center at 17196-17236 Pacific Coast Highway from a Palm Springs, California-based private investor in a 1031 exchange, which allows a property seller to defer capital gains taxes if proceeds from the sale are invested into similar real estate in a short window of time, according to CoStar sales data.
The $386-per-square-foot selling price is in line with the Orange County average, according to CoStar.
The deal is reflection that retail centers in prime locations with strong tenant mixes have maintained their value even as the larger retail real estate sector has suffered this year.
The 1.7-acre Village Plaza was built in 1972 and renovated last year, according to retail brokerage Hanley Investment Group, which represented the seller. The center is 91% occupied by tenants, including Harbor Barber, La Bodega Bottle Shop, Super Mex, Stoney’s Pizza and Tsunami Sushi.
Properties along Pacific Coast Highway receive strong interest from investors interested in their long-term value, despite closures and other economic effects caused by the coronavirus pandemic.
Huntington Beach is the largest retail hub by square footage in Orange County, and its rents are in line with the broader market average that are around 6.5% higher than their pre-recession peak, according to CoStar Market Analytics. Huntington Harbour is one of the most affluent communities in Orange County, with the average household income within a mile radius of Village Plaza amounting to more than $170,000.