LOS ANGELES—InvenTrust has acquired the Stevenson Ranch Plaza in the Santa Clarita Valley for $72.5 million. The investor has been on a buying frenzy to reposition its portfolio. This acquisition is one of $330 million worth of purchases that company has announced in the last month, all of which were located in top-tier markets. The name of the seller was not disclosed.
“Stevenson Ranch Plaza presented an excellent opportunity for the buyer to own an irreplaceable grocery-anchored retail center in a great neighborhood with upscale demographics,” Kevin Fryman, SVP at Hanley Investment Group, tells GlobeSt.com. “We are still seeing strong demand by institutional investors for well-located stable grocery-anchored retail centers.” Fryman and Hanley Investment Group president Ed Hanley represented the buyer and seller in the transaction.
For this particular asset, InvenTrust touted strong residential growth and high traffic in the area, which is 35 miles northwest of Downtown Los Angeles, as its motives for the jumping on investment opportunity. It plans to drive value at the center through a renovation plan in the long term, but is happy with the asset in the near term and for the opportunity to further grow its Southern California portfolio. The investor did not respond to a request for comment.
Market expert Geoff Tranchina, EVP of capital markets retail investment sales at JLL, who was not involved in the deal, the area has benefited from growth and limited supply. “That trade area got hit really hard during the recession, but housing has come back, retail has come back and there is a cross-valley connector road that connects the east and the west portions of the valley in Santa Clarita that has been a game changer,” Tranchina tells GlobeSt.com. “It has really opened up retail and consumer flow across the area. All of these things combined with a mature residential community and limited product available on the market, which is really the key here, is really driving values today in what I would call a core-plus marketplace.”
The 187,035-square-foot property is 97% occupied and anchored by a Ralph’s grocery store. Other tenants at the center include LA Fitness, PetSmart and Stein Mart. The property is located at 24917 Pico Canyon Rd, Stevenson Ranch, CA.