OneV’s first purchase of 2021, the Old Town Shopping Strip was a well-located property at the gateway to Old Town Tustin. Old Town Tustin featured a number of popular restaurants and shops and was slated for major residential redevelopment in future years.
Additionally, the property was located in close proximity to Newport Avenue (45,400 cars per day) and the entrance/exit to the 5 freeway (292,000 cars per day). Further, the property featured excellent occupancy history and excellent demographics in the surrounding area.
OneV Capital revitalized the overall look and feel of the center with extensive façade and lighting improvements. The team also secured a new lease with Taco Mesita, an up and coming fast casual concept focused on serving gourmet Mexican food and beverages. Taco Mesita also planned for an extensive remodel of the outdoor patio, resulting in increased visibility and draw from passing traffic.
The Sale & Return
In late 2021, the team received an unsolicited offer to purchase the property, representing a price of $679.09 per square foot and a 5.00% cap rate. This was based on future income which included Taco Mesita, despite the fact that the tenant was still working on getting permits with the city of Tustin.
The Buyer opened escrow prior to construction starting by the new restaurant anchor and closed escrow on the 368th day of ownership. The sale represented a return of invested capital plus nearly 70% to investors.