Closing Hamner Square Despite 19 Years Remaining on Ground Lease

We initially reached out to the client regarding some apartments they own in Corona. The owner asked us to provide analysis on both their apartment portfolio as well as their retail and office portfolio on Hamner Ave.

We differentiated ourselves from the competition by offering to provide a detailed 10-year comparative analysis to see what opportunities the client might have to make more money and make their life easier.

Ultimately the seller decided to use the proceeds of this transaction to pay off a loan instead of completing a 1031 exchange. The seller is now in a position where she can utilize the equity from the adjacent properties to exchange into an out of state single-tenant net leased property.

The buyer is an experienced commercial real estate owner with various types of assets, including shopping centers. He was also experienced with ground leases and found the deal attractive due to the location and CAP rate.

For the average investor there weren’t any available financing options due to the length of term remaining on the ground lease. Our team sourced—through previous relationships—the right buyer whose experience carried enough weight to secure the debt needed to close the deal.

Centennial’s collaborative approach succeeded again in a challenging market with a difficult and complex transaction.