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Wednesday, May 29, 2024

La Habra Shopping Center Sells for $513 PSF

The Row on Harbor, a multi-tenant retail center in La Habra, has traded hands in one of the priciest local retail sales of the past year on a per-foot basis.

The 24,313-square-foot retail center at 1450-1478 S. Harbor Blvd., located a block south of Imperial Highway, sold for $12.5 million, or about $513 per square foot.

On a total price basis, the deal is the fourth priciest reported retail transaction year-to-date in OC, according to data from real estate market tracker CoStar Group Inc. In the city of La Habra, it’s the most expensive retail sale since 2019, and the most expensive commercial real estate deal in over a year, CoStar records indicate.

A private 1031 buyer, which property records indicate has ties to Long Beach’s Alamitos Associates, paid all cash for the property, according to JLL Capital Markets, which represented the seller, Los Angeles-based DMI Real Estate Group.

“It is very rare that high-quality strip centers in Orange County come to the market,” JLL Senior Director Daniel Tyner said in a statement.

Tyner worked on the deal with JLL’s Gleb Lvovich and Geoff Tranchina. The property was initially listed for about $13.4 million, according to CoStar records.

200% Premium

DMI Real Estate paid $5.7 million for the Harbor Boulevard property in 2018 and subsequently created The Row, which is now fully leased to 14 tenants, with primarily food and service uses “with strong followings in the local community,” according to JLL.

Notable tenants include EggBred, AkaFuji, Furai Chicken, Bodhi Leaf Coffee Traders, Code Ninjas and Club Pilates.

Average household incomes within a 1-mile radius of The Row on Harbor surpass $140,000, according to JLL.

The asset is on a 1.7-acre lot.

Pilates, Eggs

The property’s tenant base includes a mix of food and fitness retailers, some of which are among the fastest-growing retail companies in the wake of the pandemic.

Club Pilates is one such example; it’s one of several brands under parent company Xponential Fitness Inc. (NYSE: XPOF), the Irvine-based boutique fitness franchiser.

Xponential, headed by founder Anthony Geisler, paid $2 million for Club Pilates in 2015 when it counted about 30 locations.

The brand has north of 120 locations today and is worth “50 times what I bought it for,” Geisler told the Business Journal earlier this year.
Xponential counts over 2,600 open studios domestically and globally, including locations in Japan, the U.K., Mexico and New Zealand.

It expects to reach $300 million in sales this year (see story, page 3).

EggBred is another popular tenant at the shopping center, with the breakfast and brunch restaurant amassing a following of nearly 40,000 users on Instagram and videos of the company’s egg-themed entrées racking up north of 200,000 likes on TikTok.

La Habra is the restaurant’s sole location, though it has plans to open two additional outposts soon in Huntington Beach and Long Beach.

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