Holliday Fenoglio Fowler, L.P. (“HFF”), on behalf of the owner, is marketing for sale Kaleidoscope, a 243,660-square-foot retail center located in the highly affluent Southern California community of Mission Viejo. Currently 82.4 percent occupied (87.5 percent leased), the retail property for sale is anchored by Edwards Theaters (Regal), LA Fitness, Buffalo Wild Wings, Burke Williams Spa and Union Market, a proven public market/food hall concept. Surrounded by some of Southern California’s most desirable demographics and situated prominently on the I-5 Freeway, 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.
Recognized as an experiential retail destination within the trade area, the project features a unique mix of dining, entertainment and daily needs tenants. Edwards Theaters and the entertainment-focused tenant mix at Kaleidoscope complements the adjacent Simon Properties-owned Shops at Mission Viejo. This 1.1 million-square-foot top-tier mall lacks a theater or any entertainment options, but tenants include Nordstrom, Apple, TESLA, J Crew, Microsoft, Lululemon and others.
The property is situated in 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. More than 313,000 residents live within a five-mile radius, and the staggering wealth of the trade area is demonstrated by the more than $135,000 average household income and $730,000 median home price within a three-mile radius of Kaleidoscope. With almost 2,000 multi-family units and new subdivisions being delivered, this location is poised to benefit from densification. Additionally, less than 14 percent of the square footage has lease expirations over the next six years. The entire project has an average remaining lease term of more than eight years.