Stockdale Capital Continues Retail Repositioning Strategy in $157M Acquisition
Stockdale Capital Partners has acquired an open-air retail center in Southern California for $157 million, looking to take advantage of the market's population growth and reposition the property. Hamilton Lane is serving as a co-investor on the deal that was marketed by CBRE.
The property, The Shoppes at Chino Hills, spans 378,140 square feet. Importantly, the location is just 35 miles east of Downtown Los Angeles, which hosts a population of over 4.7 million residents, according to Stockdale. That adds to the appeal of the limited retail supply that exists in Chino Hills, said the company.
"We view Chino Hills as one of the most compelling retail markets in Southern California," Jeff Bhathal, co-head of Stockdale's retail platform, said in a statement.
"Supported by exceptional demographics and the rapid growth occurring throughout Chino Hills, we see a significant opportunity to attract nationally recognized retailers, restaurants, and experiential concepts that are currently underrepresented in the market."
Plus, there's an open retail aspect of the property, which the two investment firms noted as a key connection between shopping, dining and entertainment. This adds a layer of convenience for consumers.
Going forward, Stockdale said it intends to invest in the newly acquired asset and the community, which includes repositioning, rebranding and remerchandising. The LA-based firm also plans a small name change, renaming the site to Shops at Chino Hills.
Trader Joe's is currently the grocery anchor at the center, with the potential to attract new retail tenants. Also, it offers amenities including farmers' markets, seasonal events, a central promenade and family-friendly programming.
The move for Stockdale aligns with its strategy of acquiring high-quality retail properties while looking to potentially enhance the value by repositioning.
'An example of this took place earlier this year, with Stockdale Capital announcing the recapitalization of its 1.1 million square feet retail center in Denver, The Shops at Northfield. Since buying the property in 2021, it has completed roughly 350,000 square feet in new retail leases and has secured entitlements to add as many as 1,500 multifamily units to the property.
Stockdale plans to share more about its repositioning plans at what will soon be called Shops at Chino Hills in the coming months.
Source: GlobeSt/ALM