A second portion of CIM Group’s mixed- use Strand development in Hunting- ton Beach is officially on the sales market.
The nearly 97,000-square-foot retail and office portion of the Strand, at 5th Street and Pacific Coast Highway, was listed for sale earlier this month, according to brokerage data.
The Irvine office of Holliday Fenoglio Fowler LP has the listing for the property, which is going to market without a set asking price.
The property, located a block north of the Huntington Beach pier, includes about 65,000 square feet of retail space, including a CVS/Pharmacy and a Forever 21 store, in addition to nearly 32,000 square feet of offices.
The retail portion of the property is about 92% leased, but occupancy will increase to about 99% with some pending leases, according to marketing materials for the center.
The office space at the project is full, according to HFF’s marketing materials.
The property has no tenant rollover for at least five years, according to brokerage materials.
The deal’s expected to be one of the pricier retail-driven sales in Orange County this year and is one of the larger local retail properties now on the market that hasn’t been linked to being in any financial distress.
CIM Group, a Los Angeles-based real estate investor and developer, opened the Strand about three years ago. The 3.5-acre mixed-use project was developed for a reported $90 million.
The Strand also includes the Shorebreak, a 157-room and 39-suite hotel managed by Joie de Vivre Hospitality of San Francisco. The Shorebreak is being marketed for sale by the Newport Beach-based hotels group of CBRE Group Inc.
The Business Journal last month reported on the potential sale of the Shorebreak and cited sources who said CIM Group was likely to put other portions of the Strand on the market.
The Strand isn’t the only Southern California property that CIM Group has been looking to sell of late, according to reports.
The company recently agreed to sell the 632-room Renaissance Hollywood Hotel to Loews Hotels & Resorts of New York, in a deal estimated to be about $165 million. CIM purchased the Kodak Theatre, the 20-story Renaissance Hotel and the nearby Hollywood & Highland shopping center in 2004 for a reported $201 million.
First of Several?
Mobilitie LLC Chief Executive Gary Jabara has started spending some of the proceeds of his recent blockbuster cell-phone-tower deal on local real estate.
Jabara’s Mobilitie Real Estate Investments LLC recently spent about $5 million to buy a small Corona del Mar retail and office property along Coast Highway.
The nearly 8,000-square-foot building at 2700 E. Coast Highway traded hands for about $627 per square foot, according to brokerage data.
A private trust sold the building, which has a jewelry store and pharmacy among its tenants.
It’s the first local commercial real estate deal that Jabara is reported to have closed on since his Newport Beach-based Mobilitie—one of the country’s largest owners of cell towers—sold off a portion of its portfolio to Boca Raton, Fla.-based competitor SBA Communications Corp.
That deal, estimated at about $1.1 billion, closed near the end of April. At the time the deal was struck in February, Jabara told the Business Journal that he would be looking to buy apartments, hotels and other commercial properties as investments with some of the proceeds from the sale.
Sports teams are also a possibility, according to reports.
Jabara last week was named as a potential buyer of the San Diego Padres, said to be on the market for about $800 million.
Ian Brown and Vanessa Brown, of the Newport Beach-based office of Newmark Grubb Knight Frank, represented the seller. Jon Flagg of HÔM Real Estate Group Inc.’s Newport Beach office represented Mobilitie.
Broker Switch
Brokerage Jones Lang LaSalle has added a new industrial team to its Irvine office.
The company recently added Cameron Driscoll and Luke McDaniel as senior vice presidents. The two were previously with Voit Real Estate Services Inc.
“Our goal is to grow our industrial platform in the North Orange County industrial corridor connecting the Port of Los Angeles to the Inland Empire for warehouse distribution to better serve our clients,” said Jeff Ingham, Jones Lang LaSalle’s senior managing director.
