Anchor Point Capital executes sale of Plaza Diamond Bar MXU office, retail assets in Los Angeles County

Diamond Bar, CA Anchor Point Capital arranged the $12.2 million sale of Plaza Diamond Bar, a two-building property located in Los Angeles County on a site along the 57 Freeway corridor between the San Gabriel Valley and Orange County. The transaction included the off-market sale of a nearly 25,000 s/f mixed-use office building and an adjacent 8,000 s/f freestanding multi-tenant retail building that was marketed for sale.

The two properties were acquired by two separate buyers, both private investors in the area. The office building at 2040 S. Brea Canyon Rd. sold as an all-cash deal and the retail building at 2020 S. Brea Canyon Rd. sold with a creative seller financing structured by Anchor Point Capital. This allowed the seller to fully capture above market premium on price while providing the buyer better-than-market debt rates.

The seller of both assets was a partnership led by Metro Properties, LLC. Plaza Diamond Bar is a multi-building property that sold off individual parcels all to different buyers over the years. That strategy ultimately helped create value and flexibility for buyers who now have the option of expanding the medical campus concept or capturing more traditional office occupiers seeking a suburban setting.

Eric Vu, managing principal of Anchor Point Capital, said, “These sale transactions demonstrate that office still has life, and certain office assets can generate strong investor interest. In this case, the value of a quasi-medical campus situated on a high-profile freeway location in a suburban environment drove demand and price premiums higher than expected. While it is true, we are seeing a softening for urban office assets, that interest has been diverted to towards suburban office, as was the case for this MXU office building at Plaza Diamond Bar.”

The assets are part of a larger professional complex that includes medical users, physicians and services that appeal to the surrounding affluent neighborhoods. The location is along the 57 freeway where 220,000 vehicles pass daily and adjacent to Diamond Bar High school, as well as near the campuses of Cal Poly Pomona and Cal State Fullerton.

The 40% leased, two-story office building was built in 2007. It is leased to a mix of medical and related tenants, as well as those that provide services to the community. The 50% leased, single-story retail building was built in 1980 and renovated in 1992. Both sold for below market cap rates and high price per s/f prices. Sales of class B/C office buildings have averaged below $290 per s/f in the past 12 months in California and this sale exceeded $325 per s/f. The office cap rate was 2.8% and the retail cap rate was 1.8%.