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7/21/17
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Gardena Crenshaw Plaza, a 26.5k sf, AutoZone-anchored retail center in Gardena, sold for $7 mil ($264/sf). It was sold by Diamond Rock Partners, a real estate developer, owner and investment advisor specializing in value-add opportunities.
Located at 14730-14842 Crenshaw Blvd, at the corner of 147th St, the property is 100% occupied by national or regional chains. The center underwent a substantial property upgrade between 2007 and 2017, including a new roof, HVAC units, electrical panels, and exterior building painting.
CBRE’s Dan Riley and Austin Wolitarsky represented Diamond Rock Partners in the transaction. The buyer, Crenshaw Retail Holding LLC, represented themselves with Mark Rafeh and John Proia of Promark Investments Inc. being the primary principals.
According to Mo Zahrawi, Managing Partner of Diamond Rock Partners, the firm took a 35% occupied retail center with under market rents, and brought it to 100% occupancy at market rents.
“The income generated over the six-year holding period, including rents and revenue from the sale of the asset, is approximately five times the all-cash purchase price, and returned three times the initial principal investment to our investors," noted David Makharadze, Managing Partner of Diamond Rock Partners.
The Los Angeles retail market’s large and diverse population, thriving tourist industry, and solid market fundamentals have been supporting healthy leasing activity in the region, according to CBRE’s second-quarter research. Occupancy levels are expected to remain steady over the next 12 months, even with new construction.
“Investor demand for Los Angeles County urban infill and street-front retail properties has remained strong in the current market,” said Riley. “The substantial recent upgrades and renovations, tenured e-commerce resistant tenant mix, and national credit via a new 10-year lease with AutoZone made Gardena Crenshaw Plaza an especially attractive opportunity.”
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