Katella Gateway Sells to Katella Star Plaza for $33.5M or $374 PSF

Katella Gateway, an 89,559-square-foot neighborhood retail center shopping center in Garden Grove recently sold to Katella Star Plaza. The sale price totaled $33.5 million or $374 per square foot at a 5.8 percent cap rate.

The center is located at 10870 W. Katella Ave. at the signalized intersection of two of Orange County’s primary thoroughfares: West Katella Avenue and South Euclid Street. The property features street visibility with two monument signs and 494 linear feet of frontage along West Katella Avenue and 599 linear feet on South Euclid Street. More than 36,300 cars per day pass by Katella Gateway on West Katella Avenue.

Built in 1979, Katella Gateway went through an extensive renovation and remodel in 2017. The center is anchored by UEI College. National and regional satellite tenancy includes Gold’s Gym, T-Mobile and Wholesale Nutrition Center. The center was 100 percent leased at the time of the sale with long-term leases in place.

Sheri Messerlian with NAI Capital Commercial’s retail services group in the Torrance office represented the buyer in the transaction. The seller, Red Mountain Group, KAT GG DE LLC, was represented by John Read of CBRE.