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6/25/15
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An investor/owner has paid $9.6 mil for a half-vacant, 43.6k sf ($220/sf) neighborhood shopping center in Cerritos, with plans to occupy a major portion of the multi-tenant complex. Built in 1979, the property is situated on 3.83 acres at 17500-17510 Carmenita Rd, near the heavily trafficked intersection with Artesia Blvd.
Major tenants at the center include Dollar Tree and Wilshire State Bank, but the largest space, a 27k sf former Rite-Aid Drug Store location, has been vacant for more than a year. That’s the space the buyer plans to occupy for his furniture retailing business.
Colliers Executive Vice President Christopher Maling and Executive Vice President David Maling represented the seller, Five Points LLC. Brett OKeefe of RE/Max Commercial repped the buyer.
“While the space fits the expansion and higher-visibility needs of the furniture company and brings the center to full occupancy, it’s also an example of adaptive reuse, where space originally designed and built for one type of tenant is later occupied by a different type of user,” noted Christopher Maling.
Surrounded by several residential communities, the center was acquired by the furniture retailer during its search for a larger and more visible location to lease. However, when lease negotiations commenced, it became evident that the retailer would be better served by purchasing the center.
“As neighborhood and community shopping centers undergo a sea change in the types of tenants occupying space, savvy investors are acquiring under-utilized and older centers like this one to meet changing consumer buying habits that have been forced upon them by the Internet and online shopping,” Christopher Maling added. “Although online retailing is still a relatively small segment of the overall consumer market, it has had a major influence on many centers. Still, though, there are certain businesses, like furniture retailing, where consumers still want to touch and feel the merchandise, and that will never change.”
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