Copyright Los Angeles Times
Rancho Ortega Plaza in San Juan Capistrano Sold to 1031 Exchange Buyer in 7-Day Escrow Hanley Investment Group Real Estate Advisors, a real estate brokerage and advisory firm specializing in retail property sales, has announced the sale of Rancho Ortega Plaza, a two-story, 23,122-square-foot strip center anchored by Starbucks in San Juan Capistrano, California. The property sold for $9.2 million to a private 1031 exchange buyer in a seven-day escrow. Hanley Investment Group’s executive vice president, Kevin Fryman, and president, Ed Hanley, represented the seller, a private investor based in Orange County. The buyer, a Los Angeles-based private investor, was represented by Michael Asarch of Asarch Commercial Endeavors in Valencia. “This was a rare South Orange County Starbucks-anchored strip center,” said Fryman. “We generated an offer from a private 1031 buyer within one day of launching marketing and closed escrow within 30 days, including a two-day due diligence period. We structured seller financing to support the expedited closing timeline.” Fryman noted that the team proactively advised the seller to obtain third-party reports prior to marketing, enabling a streamlined due diligence process. Rancho Ortega Plaza was 89% occupied at the time of the sale, offering the buyer value-add potential through the lease-up of the remaining first-floor vacancy. Since 2022, tenants representing 9,600 square feet have executed new leases at the center. Located at 27211-27231 Ortega Highway at the signalized intersection of Rancho Viejo Road and SR 74, the property benefits from a high-traffic location with 55,000 cars per day. Starbucks has operated at the center since it was built in 2001. Other long-term tenants include Tannin’s Wine Bar & Restaurant (since 2007), Bella Nails (since 2001) and Ortega Dental Care (since 2004). The center serves a dense and affluent trade area with 217,000 residents and an average household income of $197,000 within a five-mile radius. The area is poised for continued growth, with nearby Rancho Mission Viejo expected to deliver 14,000 new homes at buildout and a proposed residential conversion planned across Ortega Highway at the Capistrano Business Center. Rancho Ortega Plaza, built in 2004 on 2.21 acres, features a 95% internet-resistant tenant mix, including restaurant, medical, service and office uses. The property is conveniently located just off the I-5 Freeway. “Investor demand for well-located, internet-resistant retail remains strong, especially in affluent coastal markets like South Orange County,” said Hanley. “Rancho Ortega Plaza offered the right mix of credit, location and upside to support a competitive sale. This transaction also reflects our commitment to delivering speed, certainty and strategic value for our clients, even in complex, time-sensitive scenarios.”
