Giant asset manager Blackstone Inc. is now the owner of several Orange County shopping centers after completing the acquisition of a San Diego real estate investment trust.
Retail Opportunity Investments Corp. (ROIC), which calls itself the largest REIT for grocery-anchored shopping centers on the West Coast, this month completed a $4 billion sale of its assets to Blackstone Inc. ROIC’s portfolio consisting of 93 retail properties totaling 10.5 million in square feet in Southern California as well as San Francisco, Seattle and Portland.
The deal included 32 transactions on eight separate properties in Orange County, such as Fullerton Crossroads, Harbor Place Center in Garden Grove and 5 Points Plaza and Peninsula Marketplace in Huntington Beach. Retailers leasing at the Orange County plazas that were included in the deal include Marshall’s, Ralphs and Smart & Final.
The New York City-based asset management firm bought the properties under its Blackstone Real Estate Partners X Fund in a deal that was initially announced in November.
Blackstone paid a 34% premium for the shares of ROIC.
“This transaction reflects our strong conviction in necessity-based, grocery anchored shopping centers in densely populated geographies,” Jacob Werner, co-head of Americas Acquisitions for Blackstone Real Estate, said in a statement at that time.
“The sector is experiencing accelerating fundamentals, benefiting from nearly a decade of virtually no new construction, while demand for brick-and-mortar grocery stores, restaurants, fitness and other lifestyle retailers remains healthy. We are pleased to be acquiring ROIC, which owns a unique collection of high-quality assets in some of the most desirable West Coast markets.”
HB Gets Highest Price
Peninsula Marketplace at 19051-19101 Goldenwest St. in Huntington Beach was the single highest-priced shopping center among the Orange County plazas included in the deal. The 82,437-square-foot center, anchored by Ralphs and Planet Fitness, sold for $40 million, or $485 per square foot, per CoStar data.
A Kohl’s at Fullerton Crossroads sold for $35.7 million and $427 per square foot, according to CoStar. The rest of Fullerton Crossroads – anchored by Ralphs – sold for $37.3 million, or $331 per square foot.
Harbor Place Center, the 114,421-square-foot retail plaza at 13200-13220 Harbor Blvd. in Garden Grove, changed hands for $36.9 million, or $323 per square foot. Major tenants at Harbor Place Center include AA Marketplace and Ross Dress for Less.
Blackstone also acquired 5 Points Plaza in two separate transactions. The portion of 5 Points Plaza at 18595-18691 Main St., which includes Trader Joe’s, Gap, Bank of America and The UPS Store, sold for $35.2 million and $395 per square foot.
5 Points Plaza at 18501-18593 Main St., with Tilly’s, Bath & Body Works and Vans as tenants, traded for $33.5 million and $470 per square foot.
Other Orange County plazas included in the Blackstone-ROIC deal were Cypress Center West in Cypress, $25 million, The Village at Nellie Gail Ranch in Laguna Hills, $12.8 million, a Smart & Final in Laguna Hills, $12.3 million, and Marketplace at Mission Foothills in Mission Viejo, $6.2 million.
Several retail centers in Los Angeles County, such as The Terraces Shopping Center in Rancho Palos Verdes, Fallbrook Shopping Center in West Hills, Redondo Beach Plaza and Warner Plaza in Woodland Hills were also a part of the 414-property deal.
Blackstone is one of the world’s largest owners of commercial real estate properties, with $315 billion of investor capital under management. It has a $204 billion market cap (NYSE: BX).
J.P. Morgan was ROIC’s financial advisor, with Clifford Chance US LLP acting as the company’s legal counsel.
Blackstone’s financial advisors were Morgan Stanley & Co. LLC, BofA Securities, Citigroup, Wells Fargo, Newmark, and Eastdil Secured. Simpson Thacher & Bartlett LLP was Blackstone’s legal counsel.
Orange County Centers Bought by Blackstone
Peninsula Marketplace
19051-19101 Goldenwest St., Huntington Beach
19021-19035 Goldenwest St., Huntington Beach
19125 Goldwenwest St., Huntington Beach
Fullerton Crossroads
3214-3362 Yorba Linda Blvd., Fullerton
3204 Yorba Linda Blvd., Fullerton
3200 Yorba Linda Blvd., Fullerton
3260 Yorba Linda Blvd., Fullerton
3370 Yorba Linda Blvd., Fullerton
3240 Yorba Linda Blvd., Fullerton
3334 Yorba Linda Blvd., Fullerton
3250 Yorba Linda Blvd., Fullerton
Harbor Place Center
13200-13220 Harbor Blvd., Garden Grove
13190-13192 Harbor Blvd., Garden Grove
Santa Ana Downtown Plaza
307-431 E. First St., Santa Ana
301 E. First St., Santa Ana
451 E. First St., Santa Ana
411 E. First St., Santa Ana
5 Points Plaza
18595-18691 Main St., Huntington Beach
18501-18593 Main St., Huntington Beach
Cypress Center West
4033-4065 Ball Road, Cypress
4105-4175 Ball Road, Cypress
4183-4197 Ball Road, Cypress
4125 Ball Road, Cypress
The Village at Nellie Gail Ranch
26538 Moulton Pkwy., Laguna Hills
26560 Moulton Pkwy., Laguna Hills
26548 Moulton Pkwy., Laguna Hills
26552 Moulton Pkwy., Laguna Hills
26534 Moulton Pkwy., Laguna Hills
26532 Moulton Pkwy., Laguna Hills
26562 Moulton Pkwy., Laguna Hills
Marketplace at Mission Foothills
28715 Los Alisos Blvd., Mission Viejo
28815 Los Alisos Blvd., Mission Viejo
Source: CoStar
