The Fullerton Court retail center, located at 444 North Harbor Boulevard in Fullerton, has been sold for $12.7 million, as ReBusinessOnline reported. The two-story commercial property, situated adjacent to Fullerton College, was acquired by a Los Angeles-based private 1031 exchange investor from a Newport Beach, California-based private partnership.
The transaction involved real estate advisory services provided by Sean Cox and Kevin Fryman of Hanley Investment Group Real Estate Advisors. They collaborated with Scott Hook of Summit Real Estate (RE) to represent the selling partnership. The purchasing investor was self-represented in the deal. This sale highlights activity within Orange County's commercial real estate market, with an investor utilizing a specific strategy for asset acquisition.
Fullerton Court spans 20,309 square feet and has a history of development that includes its original construction in 1982. The property underwent an expansion in 2004, reaching its current footprint. At the time the sale was finalized, the retail center was fully occupied by a diverse array of tenants. This high occupancy rate underscores the property's established commercial viability and its appeal within the local market.
Notable among the tenants are FedEx Office and Pixiu Mala Hongtang. FedEx Office has maintained a presence at Fullerton Court for more than 25 years, demonstrating a long-standing commitment to the location. This commitment was further solidified through the extension of its lease for an additional 10 years prior to the sale. Similarly, Pixiu Mala Hongtang recently executed a new 10-year lease, contributing to the property's stable tenant roster and predictable income streams for the new owner. The presence of long-term and recently secured leases provides a foundation of stability for the retail asset.
The buyer's designation as a "1031 exchange investor" indicates a particular investment strategy. A 1031 exchange, or a like-kind exchange, is a provision under section 1031 of the U.S. Internal Revenue Code that allows investors to defer capital gains taxes on the exchange of certain types of property when both the relinquished property and the replacement property are held for productive use in a trade or business or for investment. This strategic acquisition in Fullerton aligns with objectives to reinvest capital from a previous sale into a qualifying replacement property. The sale of Fullerton Court reflects continued investor interest in established, income-producing retail assets within Orange County. The terms of the sale were handled privately between the parties involved, with the brokerage firms facilitating the seller's interests.
Next steps for the property would typically involve the new owner overseeing existing leases and property management, as this transaction marks a change in ownership rather than a change in the property's operational status or development plan. The asset remains a fully occupied retail center serving the Fullerton community, including the adjacent college population.
