Kimco Realty Corp., one of the largest owners of neighborhood and community shopping centers in Orange County, has added a Yorba Linda property to its local portfolio.
The New Hyde Park, N.Y.-based real estate investment trust said last week it had closed on the $34.5 million purchase of Savi Ranch, a 161,000-square-foot shopping center just off the Riverside (91) Freeway. The four-building property changed hands for about $214 per square foot.
Brokerage data show an entity affiliated with Riverside-based Johnson Tractor Co. as the seller of the Yorba Linda center, which was built about 15 years ago.
The deal is among the priciest neighborhood shopping centers to trade hands in OC in recent months, trailing only The Landing in Newport Beach, a recently redeveloped grocery-store-anchored center on the Balboa Peninsula that sold for a reported $34.9 million this summer.
The Savi Ranch property is fully occupied. Its main building includes a 50,000-square-foot Dick’s Sporting Goods, a 43,000-square-foot Bed Bath & Beyond, and a 23,923-square-foot Michaels.
Smaller buildings on the 16-acre site hold a T.G.I. Friday’s, Duke’s Cafe and Wahoo’s Fish Taco, among other tenants.
The shopping center is part of the larger Savi Ranch Center, a mix of big-box retail, low-rise office buildings, hotels, restaurants and other buildings that run along Savi Ranch Parkway.
Buildings next to Kimco’s shopping center, but not part of this month’s sale, include a Kohl’s and Best Buy.
About 120,000 people live within five miles of the shopping center, and the average annual household income for those residents is about $141,000, according to Kimco’s marketing materials for the property.
Under 7% Vacancies
North County’s retail market runs about 26 million square feet and counts a vacancy rate of less than 7%, according to brokerage data from the Irvine office of Voit Real Estate Services Inc. Monthly rents in the region average about $1.74 per square foot.
The property is the first in Yorba Linda for Kimco, which owns or operates more than 2.8 million square feet of retail property in OC.
Notable properties it owns in North OC include Fullerton Town Center, a 257,000-square-foot shopping center that’s anchored by a Toys R Us, Office Depot and Costco, and which brought in a reported $138 million in sales last year.
Its most prominent property further south likely is The District at Tustin Legacy, a 1-million-square-foot center which Kimco developed and runs in partnership with Phoenix-based Vestar Development Co.
Kimco’s total portfolio runs about 136 million square feet in the U.S. and abroad; the company counts a market value of about $8.4 billion.
The Yorba Linda purchase was part of a recent $118 million buying spree by Kimco that included three properties outside California. Those deals—including properties in Illinois, Connecticut and North Carolina—included the assumption of $21.6 million in debt, the company said.
The company has been shedding properties in the Midwest of late, including 23 properties recently sold for $165 million. Those deals were made in order to add properties in its core markets, which included OC, according to the company.