CIM Unloads Another Birch St. Building

BREA, CA-Yet another facility has traded hands at the Birch Street Promenade, in a deal valued at nearly $4 million. It is the second building reported sold at the 400,000-sf complex this week.

The facility, known as the Brea Improv Building, encompasses 15,558 sf. Although 49% leased at the time of sale, it was sold on a pro forma cap rate of 8.86%, says Nicholas Coo, a Faris Lee Investments broker who worked on the deal. Coo explains that the building has been sold with a rent guarantee for 8,000 sf, as Improv Comedy Club is the destination tenant for that remaining 51% of leasable space. The club is slated to open in November, when its space will be entirely built out. Current occupants in the Brea Improv Building include Salsitas Mexican Grill, JoJo’s Pizza Kitchen and Daphne’s Greek Café, Coo says. The facility is located at 120 S. Brea Blvd.

Coo, along with Faris Lee colleague Carlos Lopez, acted on behalf of CIM/Superblocks. The buyers, private investors David and Peggy Long, were represented by Rich Heine of Peninsula Real Estate.

The sale of the Brea Improv Building is the second building in the Birch Street Promenade to be reported sold this week. The Brea Signature Building, located at 275 W. Birch St., has also been acquired. Bryan & Janet Inc. snapped up the facility for $4.1 million.

A total of eight buildings have already been sold in the complex, which is controlled by the Birch Street Promenade Owners Association, since it was completed last year. Selling off the individual buildings to separate buyers is “a strategy to diversify the owners association and to promote the success of the complex as a whole,” Coo says.