Orchard Supply Hardware Sells for $16.75 Million
Colliers Negotiates One of the Largest Single-Tenant Transactions This Year
Colliers International has negotiated the $16,750,000 sale of a prized Orchard Supply Hardware (OSH) location in what brokerage officials are calling the highest price ever paid on a per-square-foot basis for a single-tenant, triple-net property in Ventura County. Officials also said the price was among the highest ever paid for such a property on the same per-square-foot basis anywhere in Southern California.
Located at 1934 E. Avenida de Los Arboles in the Conejo Valley municipality of Thousand Oaks, California, some 35 miles northwest of downtown Los Angeles, the 43,138-square-foot building and five-acre parcel was acquired by St. Paul, Minnesota-based Oppidan Investment Company, a national property development firm with a full range of real estate services, including asset management, construction management and project management. The seller was a private investment firm based in Los Angeles.
Representing both parties to the record-setting transaction was the Colliers retail investment brokerage team of Executive Vice Presidents Christopher Maling, David Maling and Stephen Algermissen, all based at the firm’s downtown Los Angeles office.
“Among the main reasons we were able to achieve this record price level was that this is a single-tenant Orchard Supply Hardware store situated in a supply-constrained market with virtually little to no competition,” said Christopher Maling. “Barriers to market entry are many, but, most importantly, for this particular property, the barriers include the fact that the nearest hardware and home improvement center is five miles distant.”
The acquisition was a natural for Oppidan, which has for years counted among its clients both Lowes Companies Inc., which owns and operates the mammoth national home improvement chain and the smaller OSH chain. When the OSH chain filed for bankruptcy, Lowes stepped in and acquired most of its stores, which included a high concentration of locations in California.
“That’s why this client paying a record-setting price was no surprise to us at all,” added Maling. “It received for its efforts a prized piece of property that is occupied by one of its long-term clients in an industry it knows will only benefit by the recovering California housing market. This fits neatly into its long-term investment strategy.”
Calling it “irreplaceable,” Maling noted that the physical location of the one-story, free-standing store was another motivating factor for Oppidan. It is sandwiched between a pair of popular grocery-anchored shopping centers that help drive customer traffic into the location and is directly adjacent to the Route 23 Freeway, the main east-west highway bisecting the city and linking the southern and northern portions of burgeoning Thousand Oaks with the Ventura Freeway (US 101).
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