Where there’s darkness, there’s light – at least for retail investors.
Los Angeles has seen the closure of hundreds of shops this year causing some insiders to pronounce the death of retail.
And while there was no sale that came close to rivaling last summer’s $19,405 a square foot Bijan store sale, retail investors did not stop buying properties this year. Federal Realty Investment Trust, in fact, went on quite a spree.
The Rockville, Maryland-based retail
Federal spent the most for a stake in the Bell Gardens Marketplace, paying 91.3 million, or $279 per square foot. The deal placed the investment firm well above the rest of the pack for the priciest retail sales from June 20 to August 31.
Here are the top five priciest retail sales to close this summer so far, according to TRD’s analysis of Real Capital Analytics and CoStar data, including only sales where a majority stake, or full ownership, was purchased.
The Federal Realty portfolio / Bell Gardens Marketplace at 6901 Eastern Avenue
Federal Realty purchased the 327,000-square-foot shopping center earlier this month for an estimated $91.3 million, or $279 per square foot, as part of a seven-property, $345 millionportfolio. The seven-building site was built in 1990. Tenants include Food 4 Less, Rite Aid, Dunkin’ Donuts and Big 5 Sporting Goods.
Bay Club South Bay at 2250 Park Place
Athletic club the Bay Club Company, formerly Western Athletic Clubs, took ownership of its El Segundo property in July for $29.2 million, or $289 per square foot, from Continental Development Corp. The 100,836-square-foot property was built in 1966 and renovated in 2000. The campus has indoor basketball courts, spa services, Pilates, indoor swimming and a restaurant.
Capital One at 401 Broadway
Harlington Realty purchased the single tenant property in Santa Monica from Century West Partners for $26.3 million, or $3,040 per square foot. The 8,665-square-foot property was built last year. The deal was brokered by Patrick Wade and Alex Kozakov of CBRE. The space is also home to the Capital One Café, which serves Peet’s beverages and local snacks.
The Gardens at 12125 E. Carson Street
In June, seller 99 Cents Only cashed out and sold its 57,985-square-foot shopping center to Gershman Properties for $22.4 million, or $385 per square foot. The five-building site includes tenants 99 Cent Only Store, Sketchers Factory Outlet and Starbucks Coffee. The seller was represented Patrick Wade and Alex Kozakov of CBRE. NKF represented the Gershman Properties.
El Monte Payless Foods Center at 11820 Valley Boulevard
Trang International Trading Inc. sold its El Monte shopping center in July for $19.4 million, or $190 per square foot. The five-building, 101,922-square-foot site was last renovated in 1970. Built in 1948, the center’s tenants include Freeway Insurance Services and wholesale lighting company Sb Lighting.