Shea Properties has sold a 233,892-square-foot retail shopping center in Marina, Calif., for $45 million. The buyer was a Southern California-based private investor. The Dunes is 100 percent leased to national and regional tenants including Best Buy, Old Navy, Kohl’s, Bed Bath & Beyond, Michaels, Party City and REI.
Built in 2007, the property is located along Pacific Coast Highway on 19.3 acres at 101-145 General Stilwell Drive, about 34 miles from Santa Cruz, Calif. A CBRE team of Kirk Brummer, Megan Wood, James Tyrrell, Jimmy Slusher, Philip Voorhees and Preston Fetrow represented the seller.
Earlier this year, Shea Properties kicked off construction at its 500,000-square-foot industrial complex in Santa Ana, Calif. The Shea Business Center is being built on the 25-acre former site of an ITT campus.
“Cap rates on better quality power centers seem to be contracting after moving very wide in 2018,” said Voorhees in prepared remarks. “High image, institutional quality centers in coastal markets like The Dunes make great sense in terms of leveraged yield, with a cap rate to 10-Year Treasury Yield spread of more than 400 basis points. A portfolio of similar assets would produce tremendous leveraged cash-on-cash returns.”
Image courtesy of CBRE