“2011 was a great year after making it through a challenging stretch during 2009-2010,” said Edward B. Hanley, president of Hanley Investment Group. "We saw sales velocity increase due partially to investors still starved for a competitive return on their investments in 2011. We expect this upward sales velocity trend to continue in 2012 as the supply of inventory increases and new financing options for buyers become more attractive."
Investors will be looking for quality single-tenant and multi-tenant properties attempting to buy at what some may feel is the bottom of the market, Hanley reported. "We have seen cap rate compression in the Class A credit single-tenant and grocery-anchored shopping center product and expect this to begin in the shadow-anchored and Class B product as the retail fundamentals continue to recover," said Hanley.
“We expect that the demand for multi-tenant retail with upside potential will continue to remain very steady,” said William B. Asher, managing director at Hanley Investment Group. “There is still a great deal of pent up demand and capital in the market pursing value-add assets for the opportunity to chase higher yields through repositioning and the lease up of excess vacancy.”
Last month, Hanley Investment Group negotiated the sale of a 31,900-square-
However, due to the lack of quality properties and the aggressive prices of shopping centers in infill California markets, Hanley Investment Group continues to work with both private and institutional investors who are willing to acquire multi-tenant shopping centers in other states. “In 2011, Hanley Investment Group sold 11 properties outside of California, mostly to investors who are based in California,"
Some of Hanley Investment Group's transactions outside of California include the purchase of a $11.58 million community shopping center in Oklahoma City, Okla.; a 65,558-square-
Hanley Investment Group's transactions also include the sale of five southern California single-tenant Walgreens, the most by any brokerage company in 2011. Located in Pasadena, Orange County, Pomona, Riverside and Lake Elsinore, Calif., the combined properties sold for a total consideration of more than $36 million in separate transactions. “At a 6.48% cap rate, the Walgreens in Lake Elsinore sale represented the lowest cap rate for a single-tenant drug store in the Inland Empire in 2011,” said Asher.
In Downtown Los Angeles, HI Urban Retail Advisors negotiated the sale of a 6,150-square-
"Retail condos can present a tremendous opportunity to own and operate real estate in some of the most dynamic markets in the country," said Carlos J. Lopez, president of HI Urban Retail Advisors. "While market forces may have limited the ongoing development of high-density, mixed-use developments in the short term, scarcity of land as well as municipal forces seeking to develop pedestrian-oriented developments, will continue in the long term. As a result, the retail condominium will be a product in the marketplace as common as multi-tenant apartment buildings, multi-tenant shopping centers and single-tenant investments, and we expect the values will remain strong."
"With just a few weeks into the new year, Hanley Investment Group already has a combined total in excess of $200 million in escrow and listings, plus a bevy of buyer requirements to fill," Hanley stated. "If January's volume of activity is any indication to how the rest of the year will go, we know it is going to be a great year! As a side note, it is going to be interesting to see how the market reacts to the results of the presidential elections in November but we are not getting the sense investors are on the sidelines waiting."
About Hanley Investment Group Real Estate Advisors
Built on a solid foundation of performance, integrity and dedication, Hanley Investment Group Real Estate Advisors is a boutique retail investment advisory firm with a three billion dollar transaction track record that is comprised of innovative specialists delivering unparalleled service and superior results that consistently exceed client expectations. Hanley Investment Group’s expertise, commitment and unwavering focus of putting the client’s needs first have continued to set the company apart in the industry. Hanley Investment Group works closely with individual investors, developers, and institutional property owners in every facet of the transaction to insure that the highest value is achieved. Clients rely on Hanley Investment Group to be the most knowledgeable and trusted source for valuation services, market information and retail property acquisitions and dispositions. For more information, visit the Company’s website at www.hanleyinvestment.com or call (949) 585-7610.