An 80-year ground lease for Nohl Plaza in Orange sold for $25.3 million, according to Institutional Property Advisors.
The new ground interest lease owner, Regency Centers, is looking to upgrade the 103,639-square-foot Vons-anchored shopping center, IPA said.
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The company bought the lease from a family trust.
“Having purchased the property in 1989, the sale of this generational asset was emotional for the sellers, but they are thrilled with the exceptional price and … the buyer,” said Tom Lagos, IPA executive director. “Regency saw an opportunity to upgrade the property, fine-tune the tenant mix and utilize its unique approach to operating grocer-anchored shopping centers to enhance the customer experience.”
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The shopping center is at the intersection of Lincoln Avenue and Tustin St. and was built between 1966 and 1979 on 10-plus acres. The tenants include Starbucks, Del Taco, Bank of America, the Tartan Room restaurant and a Union 76 gas station.
“This sale represents a trend we’re seeing where demand for high-quality retail properties on the West Coast is sustaining strong values despite rising interest rates,” said Patrick Toomey at IPA, a division of Marcus & Millichap. “This trend, also known as a scarcity premium, will hold until supply meets demand.”
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