By Adriana Pop, Associate Editor
After having been on the market for less than one month, a mixed-use commercial property with an enviable location in the prestigious seaside village of Corona del Mar, Calif. has found a new owner.
Newmark Grubb Knight Frank (NGKF) has facilitated the sale of the asset, which comprises two fully-occupied, two-story retail/office buildings totaling 11,526 square feet.
The closing cap rate was approximately 4 percent and the price was $8.36 million or slightly more than $734 per square foot – the highest price ever paid for a similarly sized office/retail property in Corona Del Mar.
Ian Brown, managing director with NGKF’s Newport Beach office represented the seller, Masters Properties, a family-owned entity that developed the property in the 1960’s and has managed and leased it since then. Brown also represented the buyer, 39 Beach View LK100, LLC, owned by Brad Kuish, an active local investor who paid all cash.
The property is located at 3800 and 3810 East Coast Highway and encompasses 21 parking spaces. The buildings are leased to a total of 16 tenants, including retailers, professional services, and medical office users. Some of these companies have been at the property for 20 years or more.
“Corona Del Mar is truly a jewel of Orange County, and commercial properties rarely are placed on the market in this very affluent and exclusive community,” Brown said in prepared remarks. “Additionally, this area has been experiencing a re-tenanting and repositioning renaissance; boutique tenants clamor for the few vacancies, creating even higher demand and price points.”
According to Brown, the property has received multiple offers during its short time span on the market. The buyer was selected based on his financial qualifications and understanding of the market.
”I believe that the seller was confident the asset would be in the capable hands of someone who understood its history and significance to the local community,” Brown added.
At the time of his statement, Brown was marketing another property for the Masters family. Located next to the Sherman Library & Gardens at 2711 E. Coast Highway, the two-story asset offers a total of 13,679 square feet and includes 28 parking spaces. At the time of publication, the building was completely occupied by 12 tenants, the largest of which is Hearthstone Fireplace. The asking price is $10.5 million.
Photo credits: Newmark Grubb Knight Frank