A North Hollywood-based private investor paid $5.75 mil for Lancaster Triangle, a 35.6k sf ($162/sf), multi-tenant shopping center in Lancaster. It was sold by Lancaster Triangle LLC, out of Calabasas.
Built in 1980 on 3.40 acres, Lancaster Triangle is located at 1525 W. Avenue K and 43627-43729 15th Street West, at the signalized intersection of Avenue K and 15th Street West in northern Los Angeles County. The shopping center, which was 100% occupied at the time of the sale, includes Burger King, Fast Auto & Payday Loans and American Tire Depot. Other tenants include York Shore House Fish & Chips, Mila’s Kusina Filipino Restaurant, Sugary Donuts, Socorro’s Bridal, Thai & Chinese Food II Restaurant, Remy’s Oriental Market and T-Mart.
The multi-tenant shopping center is located adjacent to the 14 Fwy on/off ramps, benefitting from 75,000 cars per day as well as more than 54,000 cars per day at the signalized intersection of Avenue K and 15th Street. More than 180,000 people reside within a five-mile radius of the center.
“Lancaster Triangle received a lot of interest due to the value-add opportunity and upside potential to remodel the center and increase below market rents in the future,” said Asher. “It also provided a low price per square foot investment with a secure and stable in-place income stream with low downside risk.”
“The premium pricing was also attributed to the property’s prime location in the heart of Lancaster at a heavily-trafficked, signalized intersection with signage visible from the adjacent 14 Freeway,” said Lefko. “The five retail buildings that make up the multi-tenant retail center were individually parcelized, which provided additional value for a future break-up disposition strategy.”