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Institutional Property Advisors Closes Leasehold Interest Sale of Long-Term Ground Lease for Nohl Plaza in Orange California

October 18, 2023
ORANGE, Calif., Oct. 18, 2023 – Institutional Property Advisors (IPA), a division of Marcus & Millichap (NYSE: MMI), announced today the sale of the leasehold interest in a long-term ground lease improved by Nohl Plaza, a 103,639-square-foot Vons-anchored shopping center in Orange, California. The property sold for $25.3 million, which represents a mid-5% cap rate based on year-one net-operating income.

“Having purchased the property in 1989, the sale of this generational asset was emotional for the sellers, but they are thrilled with the exceptional price and Regency Centers, the buyer,” said Tom Lagos, IPA executive director. “Regency saw an opportunity to upgrade the property, fine-tune the tenant mix and utilize its unique approach to operating grocer-anchored shopping centers to enhance the customer experience.” Lagos, IPA’s Patrick Toomey, Jose Carrazana, and Joe Linkogle, senior vice president with Marcus & Millichap, represented the seller, Nohl Plaza LLC, and procured the buyer.

“Navigating a marketing campaign for a leasehold offering while rising interest rates were broadly affecting commercial real estate values was challenging,” said Toomey. “We strategically positioned the asset to appeal to the right investors and highlighted the property’s below-market 80-year ground lease, which has a right of first refusal, and the anchor tenant’s below-market lease. This resulted in over a dozen offers and we completed the sale with one of the best owners and operators of shopping centers in the country.”

“This is a solid asset with long-term upside that made it possible to achieve excellent pricing, which is notable given this is not a fee simple sale,” said Linkogle.

Located at the intersection of Lincoln Avenue and Tustin Boulevard, Nohl Plaza sees over 52,000 vehicles per day. California State Route 55, adjacent to the property, records traffic counts of over 222,000 vehicles per day. The center was built between 1966 and 1979 on 10-plus acres. The tenant roster includes Starbucks, Del Taco, Bank of America, the Tartan Room restaurant, and Union 76 gas station.

“This sale represents a trend we’re seeing where demand for high-quality retail properties on the West Coast is sustaining strong values despite rising interest rates,” added Toomey. “This trend, also known as a scarcity premium, will hold until supply meets demand.”


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About Institutional Property Advisors (IPA)

Institutional Property Advisors (IPA) is a division of Marcus & Millichap (NYSE: MMI), a leading commercial real estate services firm in North America. IPA’s combination of real estate investment and capital markets expertise, industry-leading technology, and acclaimed research offer customized solutions for the acquisition, disposition and financing of institutional properties and portfolios. For more information, please visit

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