Hanley Investment Group has successfully arranged the sale of the 110,485-square-foot Sierra del Oro Towne Centre, located in Corona, California. This shopping center, fully leased and anchored by prominent retailers Ralphs and Dollar Tree, exemplifies the strong demand for grocery-anchored retail spaces in the region. The specific sale price for the property has not been disclosed.
Details of the Transaction
This transaction marks Hanley Investment Group’s sixth grocery-anchored shopping center sale within the past year. Kevin Fryman, executive vice president, and Ed Hanley, president of Hanley Investment Group, represented the seller, Phillips Edison & Company, Inc.. This company is recognized as one of the largest owners and operators of grocery-anchored neighborhood shopping centers in the United States. The buyer, a private investor based in Northern California, was represented by Jesse Millman from Newmark.
Previously, in 2017, Hanley Investment Group facilitated the sale of the same property, with Cornerstone Development Partners of Irvine as the seller and Phillips Edison as the buyer. “We secured a private all-cash 1031 exchange buyer who had recently sold their property to a land developer,” said Fryman. “We negotiated an expedited due diligence and closing timeline to provide the seller with certainty of execution.”
Strategic Enhancements and Tenant Stability
Prior to the sale, Hanley Investment Group advised the seller to establish a new long-term lease with Ralphs, enhancing the property’s value and meeting the expectations of private capital investors looking for committed anchors. The Sierra del Oro Towne Centre features a diverse mix of tenants, including Anytime Fitness, Chase Bank, Jack in the Box, Domino’s Pizza, Wingstop, Green River Montessori, Kumon Math and Reading Center, Fantastic Sams, and PostalAnnex.
Notably, approximately 72% of the tenants have operated at the center since at least 2011, with 70% being national or regional brands. Fryman remarked, “The sale of Sierra del Oro represented a unique opportunity to acquire an entire grocery-anchored shopping center, including the anchors, shop tenants, and pad building ground leases in an affluent market located in Southern California.” He pointed out that Ralphs has been a part of the shopping center since its construction in 1991 and recently executed a new long-term lease, underscoring their commitment to the location.
Additionally, Ralphs stands out as the only traditional grocery store within a three-mile radius, attracting consistent foot traffic. Ed Hanley emphasized the ongoing strong investor demand for grocery-anchored retail centers, citing the stability and daily traffic generated by grocers like Ralphs. He stated, “Both private and institutional buyers continue to target these assets for their long-term income durability and resistance to e-commerce disruption.”
With enduring foot traffic, robust tenant fundamentals, and limited new supply in high-growth markets, grocery-anchored centers like Sierra del Oro Towne Centre present a compelling investment opportunity, appealing to a wide array of investors.
