A bet on the Inland Empire retail market in 2010 has paid off well for MX3 Ventures, a Newport Beach real estate investor with ties to former Santa Ana-based storage device maker STEC Inc.
MX3 recently closed on the sale of Shoppes at Chino Hills, a 377,966-square-foot mall in the southwestern part of San Bernardino County.
Dunhill Partners Inc., a Dallas-based investor that owns and manages more than 5 million square feet of retail properties across the country, paid $147 million for the mall in one of the larger stand-alone shopping center sales in Southern California this year.
It’s the third California retail property for Dunhill Partners, which also has holdings in Riverside and Vacaville, according to the company’s website.
The deal works out to a price of about $389 per square foot for the center, which is next to the Chino Valley (71) Freeway and about eight miles north of Yorba Linda.
MX3 paid a reported $94.5 million for the Shoppes at Chino Hills five years ago.
The property was built in 2008 by Minneapolis-based Opus West, which turned the property over to lenders the following year after the developer went bankrupt.
The mall had about $105 million in debt tied to it at the time of Opus’ bankruptcy and had a fair amount of vacant space.
It’s now nearly full, with larger tenants including Forever 21, H&M, Trader Joe’s, Banana Republic, Victoria’s Secret and Barnes & Noble.
The sale to Dunhill Partners was brokered by Ryan Gallagher and CJ Osbrink with the Irvine office of Holliday Fenoglio Fowler LP.
“We purchased the property in early 2010 while it was struggling due to the downturn in the economy,” said MX3’s Manouch Moshayedi in a statement.
“We increased tenancy from high 70% occupancy to more than 96%,” Moshayedi said. “We are very pleased with the ultimate outcome of this transaction.”
Real estate isn’t the only business that Moshayedi and his family have made a fortune on.
Manouch Moshayedi is the former chairman and chief executive of STEC Inc., a storage drive maker that was sold to a San Jose-based subsidiary of Irvine’s Western Digital Corp. in 2013 for $340 million. The company now operates as part of HGST Inc., a unit of Western Digital.
Other family members that previously served as executives at STEC include Mark Moshayedi, Manouch’s brother and STEC co-founder, and Mike Moshayedi, another brother who left the technology company in 2007.
Manouch Moshayedi resigned his chairmanship and top post in late 2011 amid insider trading accusations levied by the Securities and Exchange Commission.
A jury trial last year cleared him of all charges related to those accusations, according to court records.
A good deal of Moshayedi family fortune appears to have been reinvested into commercial real estate, with the Moshayedi’s reported to have made a number of notable deals in and around Orange County over the past six or so years.
Notable purchases involving the family include the nearly $25 million purchase of Mariner’s Mile Marine Center, a mixed-use project on a high-profile stretch of West Coast Highway in Newport Beach.
That property, bought in 2012, is a few doors down from Joe’s Crab Shack, a restaurant that family members also bought in 2009 for a reported $7.3 million
The family also owns offices in Aliso Viejo and Tustin, as well as some out-of-state properties, according to property records and regulatory filings.
The 2010 purchase of the Shoppes at Chino Hills is the largest real estate deal the family is known to have made.
Members of the Moshayedi family took out a $60.8 million loan on the mall in 2011, according to regulatory filings.