Hanley Investment Group has successfully arranged the sale of the 110,485-square-foot Sierra del Oro Towne Centre, located in Corona, California. This shopping center, which is fully leased, features prominent anchors such as Ralphs and Dollar Tree. While the sale price remains undisclosed, this transaction marks Hanley Investment Group’s sixth grocery-anchored shopping center sale within the past year.
Transaction Details and Representation
In this recent sale, Hanley Investment Group’s executive vice president, Kevin Fryman, and president, Ed Hanley, represented the seller, Phillips Edison & Company, Inc., one of the largest operators of grocery-anchored neighborhood shopping centers in the United States. The buyer, a private investor based in Northern California, was represented by Jesse Millman of Newmark. This sale follows a previous transaction in 2017 when Hanley Investment Group facilitated the sale of the same property to Phillips Edison & Company.
“We secured a private all-cash 1031 exchange buyer who had recently sold their property to a land developer,” Fryman stated. “We negotiated an expedited due diligence and closing timeline to provide the seller with certainty of execution.”
Property Highlights and Market Insights
Before marketing the property, Hanley Investment Group advised the seller to establish a new long-term lease with Ralphs to enhance the center’s value, catering to private investors’ preference for strong anchor tenants. In addition to Ralphs and Dollar Tree, the Sierra del Oro Towne Centre hosts a diverse tenant mix including Anytime Fitness, Chase Bank, Jack in the Box, Domino’s Pizza, Wingstop, Green River Montessori, Kumon Math and Reading Center, Fantastic Sams, and PostalAnnex.
According to Fryman, approximately 72% of the tenants have been in operation at the center since at least 2011, with 70% being national or regional brands. “The sale of Sierra del Oro represented a unique opportunity to acquire an entire grocery-anchored shopping center, including the anchors, shop tenants, and pad building ground leases in an affluent market located in Southern California,” he noted. “Ralphs has been operating at the shopping center since it was constructed in 1991 and recently executed a new long-term lease, underscoring their commitment to the location. Furthermore, Ralphs is the only traditional grocery store within a three-mile radius.”
“Investor demand for grocery-anchored retail centers remains exceptionally strong, driven by the stability and daily traffic that grocers like Ralphs generate,” Hanley added. “Both private and institutional buyers continue to target these assets for their long-term income durability and resistance to e-commerce disruption. With consistent foot traffic, strong tenant fundamentals, and limited new supply in high-growth markets, grocery-anchored centers present a compelling investment profile.”
This successful sale not only highlights the ongoing appeal of grocery-anchored shopping centers but also reflects the strategic efforts of Hanley Investment Group in enhancing property value and facilitating successful transactions in the retail real estate market.