Two recent LA-area retail sales totaled up to $29 mil. The properties, Sierra Commons in Palmdale and Pacific Plaza in Torrance, have a combined 128k sf of retail space.
In one of the deals, an investment group led by LA-based Progression Real Estate Investments purchased the leasehold-interest in Sierra Commons, a 104.8k sf community shopping center in Palmdale, for $18.3 mil. The shopping center, which is located on 9.78 acres at 39626 10th St, is leased to national and regional tenants including Ashley Furniture, Michaels, BevMo!, The Coffee Bean & Tea Leaf and Pacific Dental. The center, which was 90% occupied at the time of the sale, was built in 1994 and renovated in 2005.
Patrick G. Kent and William B. Asher of Hanley Investment Group represented the seller, Grae Palmdale Landlord LLC of Los Angeles, in the transaction. The buyer was a highly qualified 1031 exchange buyer who understood the leasehold characteristic of the property and was capable of assuming an existing CMBS loan with over 11 years remaining.
“It’s historically been one of the best locations for retail in the Antelope Valley,” said Kent, a senior vice president at Hanley Investment Group. “Sierra Commons is ideally situated between the Antelope Valley Mall and 14 Freeway; ‘main and main’ for the entire Palmdale/Lancaster area. It’s fundamentally great real estate.”
In the second transaction, Metro Properties of Los Angeles paid $10.65 mil for Pacific Plaza, a 23.4k sf, multi-tenant retail property in Torrance. The 2.15-acre retail center, which is located at 2382, 2390 and 2396 Crenshaw Blvd, includes tenants Subway, H&R Block, The UPS Store, and BB’s Beauty Nail & Spa. Pacific Plaza was built in 1992, and was 100% occupied at the time of the sale.
Jeremy S. McChesney, a senior vice president with Hanley Investment Group, represented the buyer in the deal. The seller, the Holt Group Inc of Vancouver, WA, was represented by Hanley Investment Group’s senior vice presidents Patrick G. Kent and Kevin T. Fryman.
According to Kent, the listing attracted multiple all-cash buyers within the first two weeks and closed at 100% of the list price. He noted, “The closing of this multi-tenant retail property is continued evidence of the high demand for good quality retail property that is located in a major metropolitan areas.”