Plaza El Paseo at Rancho Santa Margarita Town Center, a 107k sf retail asset in the south OC city of Rancho Santa Margarita, sold for $56.6 mil. The sale came in at a cap rate of 5.39 percent, a cash-on-cash yield of 3.74 percent, and a price-per-square-foot near $550.
Built in 2002 and situated on 10.56 acres at the corner of El Paseo and Alma Aldea, the asset is anchored by Bed, Bath & Beyond, BevMo, and Wood Ranch BBQ. It is centrally located within the 1 msf Santa Margarita Town Center, one of the region’s most successful master-planned retail developments, and is adjacent to Kohl’s and the Rancho Santa Margarita City Offices.
Rick Chichester, Nicholas Coo, and Chris DePierro of Faris Lee Investments represented both the seller, K&G El Paseo 1 & 2 LLC, and the buyer, Plaza El Paseo Center LLC, in the transaction. The buyer agreed to assume an existing $32 mil conduit loan featuring an above-market interest rate as part of the deal, so that the seller could avoid more than $6 mil in defeasance penalties.