The Shoppes at Chino Hills, a two-year-old, open-air, 388,000-square-foot lifestyle center located in an affluent Southern California market, is under new ownership today.
A private Southern California-based investment group purchased the 87-percent-leased property on a free and clear basis for $94.5 million or about $244 per square foot.
Local construction industry sources tell Real Estate Channel a comparable property today would have an estimated hard cost of about $500 per square foot.
The sellers comprised a bank consortium group led by Bank of America.
The Orange County and Los Angeles offices of HFF (NYSE: HF) (Holliday Fenoglio Fowler LP), which brokered the transaction, called it the largest bank-owned deal of its kind in Southern California.
The Shoppes at Chino Hills, at 13800-13920 Village Center Drive in Chino Hills, was originally developed by Minneapolis-based Opus West Corp. in 2008. A bank consortium group took the property over when Opus West went bankrupt in 2009.
The HFF investment sales team was led by senior managing director Ryan Gallagher and directors Kelly Rohfeld, Bryan Ley and John Crump, who started marketing the property for the sellers in February.
The list of potential buyers was lengthy, says Gallagher.
"The Shoppes at Chino Hills is a trophy asset that was highly sought after,' he says.
"As the economy recovers, the center should be well-positioned to capitalize on the affluent surrounding demographics and continue to serve as a 'best in class' lifestyle center in the region."
The shopping center is located on 50 acres (200,000 m2) at Grand Ave. and Peyton Drive, just west of the Chino Valley Freeway.
The Shoppes at Chino Hills is part of a 750,000-square-foot (70,000 square meters) master-planned project master-planned project that includes the Chino Hills Civic Center, Chino Hills City Hall, Chino Hills Police Station and the Chino Hills public library.
The two-story property officially broke ground in 2006 and was designed by Altoon + Porter architects. The center initially had three anchors and 80 stores when it opened May 23, 2008.
Today it is anchored by XXI Forever, H&M, Trader Joes, Banana Republic, Victoria's Secret and Barnes & Noble.