Toast Kitchen & Bar - Absolute NNN

A high-income earning consumer base, thriving tourism industry, and expanding economy provide robust structural demand for Orange County's shopping centers, neighborhood restaurants, and renowned regional malls. Retail space availability is trending near a decade-plus low as of the fourth quarter of 2023, at just 4.3%. A common refrain is that the best retail space has been leased. With inflation driving demand for discount retailers, category killers and discount grocery stores have driven recent big-box leasing. Experiential tenants, often fitness related, have also leased space recently. Absorption is limited due to a lack of available space and has run negative in recent quarters as tenants move in and out of spaces. In addition, investors are purposefully vacating tenants from older malls earmarked for redevelopment into alternative use. Construction of retail space in the market is negligible, and investors have drawn plans to scrap obsolete vacant retail space at a collection of malls across the county, most commonly adding multifamily housing units into what will become mixed-used properties. Many of these closed retail spaces slated for redevelopment stand vacant but unavailable for lease. This phenomenon has resulted in the oddity of market availability subverting vacancy. Defunct retail space will be removed from inventory as redevelopment projects progress. Demolitions will likely outpace deliveries in the years ahead as the development pipeline remains highly restrained. Orange County is developing retail space at the slowest pace relative to the largest 40 retail markets nationwide. Lease negotiating leverage resides with landlords due to the market's historically low space availability, strong demand for well-located assets, and high barriers to entry, although a dichotomy still exists between anchor and shop space. Rents have increased by 2.6% over the trailing year. Rents in central and coastal submarkets are up most substantially over the trailing year as rent growth further inland dissipated at a faster rate in 2023.Graystone Capital Advisors is pleased to exclusively present 190 S College Blvd in Brea, CA. Located at the 45,000 VPD intersection of State College Blvd and Birch Street, the property sits catty-corner to the vibrant Brea Mall. The recently remodeled 10,614 SF Toast Kitchen and Bar features an Absolute NNN lease from an experienced 8-unit operator. The property boasts a large 1.43 AC lot with 100 dedicated parking spaces, access along both State College Blvd and Birch Street, and visibility from the 57 Freeway with 257,941 vehicles passing per day. The property will further benefits from the planned expansion of The Brea Mall, with Simon Property planning a redevelopment of the 15.5-acre former Sears space. The project will deliver a vibrant mixed-use development consisting of five new commercial buildings for retail and restaurants, a five-story 380-unit market rate with some affordable housing apartments on top of a three-story parking structure, a two-story fitness center, and two outdoor gathering spaces - a plaza and a central green area. Popular tenants initially planned for the expansion include the world-renowned Din Tai Fung, Lifetime Fitness, Dick's Sporting Goods, Zara, and Philz Coffee. More new development immediately bordering the property includes a recently completed 138-room Residence Inn by Marriott and 653 luxury units at the Avalon Brea Place Apartments.