In a sales process that took just 21 days from initial listing to closing, Colliers International has completed a substantial retail investment transaction in Costa Mesa, California between two of the region’s best-known investment and development firms, company officials have announced.
An affiliate of Los Angeles-based Festival Development Corporation, which owns and develops retail properties throughout the US West region, submitted the winning bid to acquire Bristol Village Center and said the purchase was “due to the strength of the location in south Orange County and the quality of the asset,” according to Ryan Shea, Investments Director for Festival. The property was owned by Donahue Schriber Realty Group of Costa Mesa, Colliers reported.
“This was a rare opportunity to own one of the most desired retail projects in the south Orange County market at an attainable price and a favorable cap rate,” said Colliers Executive Vice President Tom Lagos, who, along with Vice President El Warner of the firm’s Los Angeles office, and Executive Vice President Jereme Snyder of the firm’s Irvine office, represented both firms in the transaction. “We were not surprised by the multiple offers this shopping center generated because of the pricing and favorable cap rate, as well as the highly visible location of this property.”
Located at 250-290 Bristol Street in Costa Mesa, near the intersection of Red Hill Avenue, the fully occupied 25,074-square-foot shopping center is comprised of five individual parcels featuring a mix of national credit brands such as McDonald’s and Del Taco and a new proposed Starbucks, combined with local businesses with strong sales including Inka Grill and Al Palace.
“With the continuing improvement in the retail economy, both locally and throughout the nation, we are seeing rising levels of interest among buyers for well-maintained local shopping centers that have had consistently high levels of occupancy,” said Colliers’ Warner. “What this provides for the buyer is a secure income stream and the ability to capitalize on Orange County’s stabilizing economy in what has become an extremely active triple-net market.” Warner continued. “Donahue Scriber categorized Bristol Village as a non-strategic asset within their portfolio, and wanted to take advantage of the current market conditions.”
Originally built in 1988, the center underwent a major renovation and upgrade in 2006, Colliers reported. It is located on nearly four acres in one of the most highly trafficked areas of Costa Mesa near that city’s border with Newport Beach. It draws consumers from such nearby attractions as the Pacific Amphitheater, Orange County Fairgrounds, Orange Coast College, and South Coast Plaza.