MILAN CAP
in the news!
Milan Capital Management sells Camarillo Village Square, a 242,000-square-foot grocery-anchored shopping center, for $83,595,000.
Milan Capital Management is very pleased to announce the sale of Camarillo Village Square, a 242,000-square-foot grocery-anchored shopping center, for $83,595,000. This was a TEXTBOOK "buy and flip" Investment case.
We originally acquired this center in May of 2021, in the midst of the pandemic, for $61,000,000 at around 87% occupancy. 22% of the square footage here was leased by either restaurant or fitness tenants, nearly all of whom were on COVID relief, and most of the investment community was scared to make any big bets on retail at the time. We were able to bring nearly all of those tenants back to paying full, contractual rent by Q4 2021, exactly in line with our underwriting.
Within the first 6 months of ownership, we executed the sale of a Starbucks/Urgent care pad at a 4.35% cap, and $1,043/foot, reducing our basis by about $4.875M.
For years, Rite Aid had been occupying a larger than a prototypical box of around 24,000 square feet, and at acquisition, we took over the relocation of this tenant to a 14,000-square-foot box adjacent to Sprouts Farmers Market. Following the relocation, we backfilled Rite Aid’s space with a turn-key built Ross, delivered on time and on budget, bringing the center to around 93% occupancy and adding substantial credit to the asset.
Additionally, we were able to lease what we considered the most "un-leasable" portion of the center to ACE Hardware, and filled nearly all of the final few shop spaces with strong local operators, bringing the center to nearly 100% occupancy in less than 2 years, and increasing the net operating income of the property by 33%. We also worked diligently to extend the leases of many of the larger credit tenants at the property, bringing the weighted average lease term of the asset to more than 7 years.
The property was sold on February 10 to an exchange buyer who recognized the value that we had created and appreciated the stability of the asset, as well as its potential for long-term appreciation through a parcelization strategy that we were implementing. The new buyer will be retaining Milan Capital Management as the property manager.
On a project level, we achieved a 38% IRR.
We'd like to thank our preferred equity partner, Peaceable Street Capital (peaceablestreet.com), our lender, Prime Finance, all of our high-net-worth equity investors who trusted us with their hard-earned money, and of course El Warner's team at Colliers who worked on this deal both at acquisition and at disposition, “from the cradle to the grave”, if you will.
To learn more about Milan Capital Success success stories click here.
Hanley Investment Group Brokers $21.2M Sale of El Dorado Shopping Center in Long Beach, California
Milan Capital Management has acquired El Dorado Shopping Center, a retail property located at 8105-8195 E. Wardlow Road in Long Beach California. Milan Cap. acquired the asset from El Segundo-based DPI Retail for $21.2 million.
For full press release click here.
SRS Brokers $35M Sale of Retail Property in La Quinta, California
The 154,383-square-foot portion of One Eleven La Quinta Center in La Quinta, California, is occupied by Ross Dress for Less, Staples, Petco and Big 5 Sporting Goods.
July 14, 2022
La Quinta, Calif. — SRS Real Estate Partners has brokered the sale [to Milan Capital Management] of a 154,383-square-foot portion of One Eleven La Quinta Center, a community retail center located at 78959 CA-11 in La Quinta. A Coachella Valley-based private family office sold the asset to Milan Capital Management for $35 million
For the full press release click here.
Colliers International Arranges $61.5 Million Sale of Retail Center in Camarillo, California
Camarillo Village Square is home to tenants including Sprouts, RiteAid, Big5 and PetSmart.
May 17, 2021
Milan Capital Management has acquired Camarillo Village Square in Camarillo California. According to Colliers International, "the sale is the largest retail transaction in Southern California this year."
For full press release click here.
Argent Retail Advisors Executes 20,000 SF Foothill Crossings Lease in Rancho Cucamonga
April 19, 2021
RANCHO CUCAMONGA, Calif., April 19, 2021 /PRNewswire/ -- Argent Retail Advisors has executed a 20,000-square-foot lease at Foothill Crossings [a Milan Capital Management property] with STGi, a national medical tenant which provides comprehensive, nationwide healthcare services to federal, state, and local government customers. Terry Bortnick, President and founder of Argent Retail Advisors, represented the property owner, locally-based FC Rancho, LLC, in the 10-year lease agreement.
For the full press release click here.
ALTO’s 27th Exit: ALTO Real Estate Funds and Milan Capital Management Sell a Medical Office Building in San Diego, CA for $17 Million
The partners doubled the equity invested in the transaction
July 13th. 2020.
SAN DIEGO--(BUSINESS WIRE)--ALTO Real Estate Fund and Milan Capital Management have sold Pomerado Professional Plaza – a medical clinic complex in a suburb of San Diego, CA, USA – for approx. $17 million, representing a 5.8% cap rate. The property was sold to a US-based REIT investing in medical properties. The sale price resulted in a doubling of the equity invested in the transaction.
For full press release click here.
Newmark Knight Frank Completes the $14.2 Million Sale
October 17th, 2019.
Newmark Knight Frank (NKF) has completed the $14.2 million sale of 100 South Anaheim, a three-story 50,384-square-foot, multi-tenant office building in downtown Anaheim, CA. The asset is fully leased to nine tenants including MemorialCare, Guggenheim Partners, Arbor E&T (ResCare), Partners Federal Credit Union and Total Paper Services.
For full press release click here.
