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A 24 3 , 6 6 0 S F VA L U E - A D D U R BA N R E TA I L C E N T E R I N A F F L U E N T O R A N G E C O U N T Y
Holliday Fenoglio Fowler, L.P., acting by and through Holliday GP Corp., a real estate broker licensed with the California Department of Real Estate, California License Number 01385740.
THE OPPORTUNITYHFF is pleased to offer the opportunity to acquire
Kaleidoscope (the “Property”), a 243,660 square-foot retail
center located in the highly affluent Southern California
community of Mission Viejo. Currently 82.4% occupied,
the Property is anchored by Edwards Theaters (Regal),
LA Fitness, Buffalo Wild Wings, Burke Williams, and Union
Market, a proven public market/food hall concept with other
locations in Orange County. Recognized as an experiential
retail destination within the trade area, the project features
a unique mix of dining, entertainment, and daily needs
tenants. Surrounded by some of Southern California’s most
desirable demographics and situated prominently on the I-5
Freeway (350,000+ CPD), Kaleidoscope offers investors
the opportunity to acquire an internet-resistant retail asset
in an irreplaceable location with significant upside potential
through multiple value enhancement opportunities.
PROPERTY SUMMARYADDRESS: 27741 Crown Valley Parkway
Mission Viejo, CA 92691
OCCUPANCY*: 82.4%
GLA: 243,660 sf
SITE SIZE: 4.90 acres
PARKING: 1,296 spaces (5.32 per 1,000 sf)
YEAR BUILT: 1998
WEBSITE: gokaleidoscope.com
KALEIDOSCOPE | EAT - PLAY - LIVE
* Does not include signed leases with Tapas and Panini Cafe. Tenant suites currently in build-out.
INVESTMENT HIGHLIGHTSEXPERIENTIAL INTERNET-RESISTANT TENANCY
Anchored by national tenants, Edwards Theaters (Regal) and LA
Fitness on long-term leases, the Property features a unique mix
of entertainment, dining, and health & wellness tenants that have
solidified the project as a true experiential retail destination.
VALUE ENHANCEMENT OPPORTUNITIES The Property offers a myriad of value creation opportunities through
lease up of available space, tenancy upgrades to capture market rents,
re-branding, and the realization of additional advertising income to
achieve value-add returns.
HEALTH & WELLNESSLA Fitness 46,076Burke Williams 12,995Sola Salons 6,162
65,233
ENTERTAINMENTEdwards Theatres 42,834Laser Quest 12,500Howie's Game Shack 12,415Jump N Jammin 9,272Bold Girlz 1,373Color Me Mine 1,052
79,446
FOOD + RETAILUnion Market 27,635Riptide 8,667Buffalo Wild Wings 7,540Tapas 6,493Ortho Mattress 5,704Panini Cafe 4,381Others 6,636
67,056
NOTABLE TENANTS
HFF | 3
64ENTERTAINMENT
38% OF LEASED SF
FOOD & RETAIL
32% OF LEASED SF
HEALTH & WELLNESS
31% OF LEASED SF
IRREPLACEABLE FREEWAY LOCATION WITHIN PRIMARY RETAIL NODEDirect “on and off” ramp access from the Interstate-5 Freeway
(350,000+ cars per day) at Crown Valley Parkway (68,000+
cars per day) provides unparalleled visibility and exposure from
a trophy location that overlooks one of the busiest freeways in
the country.
ENTERTAINMENT COMPLEMENT TO THE ADJACENT MALL Edwards Cinemas and the entertainment-focused tenant mix at
Kaleidoscope complements the traditional shopping environment
at the adjacent Shops at Mission Viejo, a 1.1M square-foot top-tier
mall whose tenants include Nordstrom, Apple, TESLA, J Crew,
Microsoft, Lululemon, and others. However, the mall lacks a
theater or any entertainment options.
SIGNIFICANT DISCOUNT TO REPLACEMENT COST
Opportunity to acquire this project at a steep discount to the
current replacement cost for this type of construction. Comparable
urban retail centers in Southern California are trading between
$400 to over $700 per square foot.
EDWARDS THEATERS RENEWAL AND RENOVATION
Demonstrating their commitment to this location, Edwards
Theaters recently executed a 10-year renewal and plans to invest
a significant amount of capital into their space to upgrade to
their new luxury theater concept, which will include improved
food and beverage, alcohol service and seat reservations.
LIMITED ROLLOVER EXPOSURELess than 14% of the GLA has lease expirations over the next 6
years. The entire project has an average remaining lease term of
more than 8 years.
KALEIDOSCOPE | EAT - PLAY - LIVE
CROWN VALLEY PKWY
(68,00
0 V
PD
)
SADDLEBACK COLLEGE25,000+ STUDENTS
SHOPS AT MISSION VIEJO1.1 MILLION SF REGIONAL MALL
MISSION REGIONAL HOSPITAL 582 BEDS
THE CENTER AT RANCHO NIGUEL
APARTMENT DEVELOPMENT1,600 RENTAL UNITS IN PLANNING OR CONSTRUCTION
SKYE AT LAGUNA NIGUEL142 UNITS - COMPLETED MAY 2016
I-5 (350,000 VPD)
LAGUNA NIGUEL
LAGUNA BEACH
ALISO VIEJO
NEWPORT BEACH
NELLIE GAIL RANCH$2M+ AVG HOME PRICE
PACIFIC OCEAN
HFF | 5
EXTREMELY AFFLUENT AND DENSELY POPULATED TRADE AREA
The Property commands arguably one of the strongest trade areas in the state, surrounded
by South Orange County’s most affluent and desirable neighborhoods, such as Mission Viejo,
Laguna Hills, Laguna Niguel, San Juan Capistrano, and Coto De Caza.
MISSION VIEJO – EXCEPTIONAL TRADE AREA• Saddleback College – 25,000+ students and approximately 2,000
employees
• Mission Regional Hospital – 2,500+ employees and South Orange County’s only regional trauma center and designated pediatric health care center
• Laguna Niguel Gateway Development Area - 1,600+ new multi-family units in planning or under construction
• Highly Accessible Location - John Wayne Airport (16 miles), San Diego County (30 miles) and Los Angeles County (35 miles).
A business-friendly, master planned community with outstanding schools, and a talented, well-educated work force, Mission Viejo benefits from exceptional demographics, a growing economy and a cluster of
regional employment centers all within a 20 minute drive.
“
“
UNION MARKET
The Property boasts over 313,000 residents within a within a 5-mile radius.
The staggering wealth of the trade area is demonstrated by the $135,000+ average household income and $730,000 median home price within a 3-mile
radius of the Property.
With almost 2,000 multi-family units and new SFR subdivisions being delivered,
this location is poised to benefit from densification.
UNENCUMBERED ASSET
Offered free and clear with no existing debt, providing the opportunity for investors to take
advantage of historically low interest rates and generate attractive leveraged returns.
KALEIDOSCOPE | EAT - PLAY - LIVE
DEMOGRAPHICS 1-MILE RADIUS
3-MILE RADIUS
5-MILE RADIUS
7-MILE RADIUS
Est. 2016 Population 9,425 132,141 313,186 490,170
Est. Population Growth 2016 - 2021 6.28% 6.85% 5.82% 5.27%
2016 Est. Average Household Income $109,603 $135,028 $125,661 $127,432
2016 Est. Median Housing Value $730,243 $729,442 $669,629 $692,258
HFF | 7
1-MILE RADIUS
3-MILE RADIUS
5-MILE RADIUS
7-MILE RADIUS
NEWPORT BEACH
IRVINE
SAN CLEMENTE
“
KALEIDOSCOPE | EAT - PLAY - LIVE KALEIDOSCOPE | EAT - PLAY - LIVE
APARTMENT DEVELOPMENT1,600 RENTAL UNITS IN PLANNING OR CONSTRUCTION
CRO
WN
VA
LLEY
PKW
Y (
68,
00
0 V
PD)
I-5
(35
0,0
00
VP
D)
DIRECT FREEWAY
ON/OFF RAMP ACCESS
CARS PER DAY(on adjacent streets)
418,000KALEIDOSCOPE
570,500Irvine Spectrum
Irvine
309,000South Coast Plaza
Costa Mesa
115,000La Jolla UTC
San Diego
156,000Fashion IslandNewport Beach 96,100
Rodeo DriveBeverly Hills
AVERAGE HOUSEHOLD INCOME(within a 5 mile radius)
$125,000KALEIDOSCOPE
$115,000Fashion IslandNewport Beach
$105,000Irvine Spectrum
Irvine
$90,000Rodeo Drive
Beverly Hills
$100,000La Jolla UTC
San Diego $85,000South Coast Plaza
Costa Mesa
HFF | 9
KALEIDOSCOPE ENJOYS ONE OF SOUTHERN CALIFORNIA’S PREMIER RETAIL LOCATIONS
SHOPS AT MISSION VIEJO1.1 MILLION SF CLASS A REGIONAL MALL
CRO
WN
VA
LLEY
PKW
Y (
68,
00
0 V
PD)
KALEIDOSCOPE | EAT - PLAY - LIVE
LEASE-UP OF AVAILABLE SPACE New ownership has the opportunity to strategically lease up available space to increase occupancy, grow income, and create a unique tenant mix that will drive additional traffic to the center.
RAISE RENTS TO MARKETSelect tenants currently pay below market rents, creating opportunity for investors to mark those tenant’s rents to market and increase income at the property.
ACTIVATE THE SIGNAGETargeted lease-up of the street facing signage, as well as window graphics and directional signage in the interior of the center are cost-efficient, value-enhancement strategies that offer investors the opportunity to increase income and enhance the environment at Kaleidoscope.
STRATEGIC MARKETING/PARTNERSHIPSKaleidoscope is uniquely positioned to cater to a variety of age ranges through a diverse tenant mix. Because of the unique tenant mix and the layout of the center, new management could increase activity at the center through strategic partnerships and well-marketed community events at the center.
OPPORTUNITIES TO ADD VALUE AT KALEIDOSCOPE
$$
HFF | 11HFF | 11
INVESTMENT ADVISORS DEBT ADVISORJOHN CRUMPDirector
310.407.2117
CA License #01420973
BRYAN LEYManaging Director
310.407.2120
CA License #01458927
GLEB LVOVICHManaging Director
949.798.4115
CA License #01496699
JUSTIN KUNDRAKAssociate
310.407.2145
CA License #01994398
TODD SUGIMOTOManaging Director
310.407.2111
CA License #01264139
HFF has been engaged by the owner of the property [properties] to market it [them] for sale. Information concerning the property [properties] described herein has been obtained from sources other than HFF, and neither Owner nor HFF, nor their respective equity holders, officers, employees and agents makes any representations or warranties, express or implied, as to the accuracy or completeness of such information. Any and all reference to age, square footage, income, expenses and any other property specific information are approximate. Any opinions, assumptions, or estimates contained herein are projections only and used for illustrative purposes and may be based on assumptions or due diligence criteria different from that used by a purchaser, and HFF, its partners, officers, employees and agents disclaim any liability that may be based upon or related to the information contained herein. Prospective purchasers should conduct their own independent investigation and rely on those results. The information contained herein is subject to change.
