Here’s what tenants are paying at Torrance Towne Center mall

Base rent varies widely at 260K sf retail complex, which Kohl anchors on a ground sublease

Los Angeles /
Jan.January 15, 2021 03:00 PM
(Google Maps)
(Google Maps)
 

The 260,000-square-foot Torrance Towne Center retail complex boasts a prime location in southern Los Angeles county, sitting at the intersection of Crenshaw Boulevard and the Pacific Coast Highway.

The city of Torrance owns the land under the mall, while the ground lease was acquired by La Caze Development Company in 2002. The 10-building complex was most recently refinanced in 2018 with a $52 million loan from Goldman Sachs, which was then included in a CMBS deal named GSMS 2019-GC38.

Documents associated with the securitization provide an inside look at the mall’s finances, which appear to have remained robust amid the pandemic.

As of October 2018, the mall was 97 percent leased to 28 tenants, including two cell tower tenants, according to loan documents. Average base rent came out to $26 per square foot, but varied widely by tenant.

Map of Torrance Towne Center. (Trepp)
Map of Torrance Towne Center. (Trepp)

The anchor tenant, Kohl’s Department Store, occupies 36 percent of the property’s area in the form of a ground sublease and pays about $1 million in ground rent per year — or less than $11 per square foot. Among the top 10 tenants, the priciest leases go to two banks, with Bank of America and Comerica Bank each paying more than $60 per square foot.

After the banks, fast casual restaurants Panera Bread has the priciest lease at $57 per square foot. Among tenants whose sales were disclosed in loan documents, Panera Bread also has the highest sales per square foot at $604.

La Caze Development Company was founded by Norman La Caze and Carole La Caze in 1980, and has been involved in developing about 3 million square feet of commercial real estate in California, Nevada and Hawaii according to the loan prospectus.

According to a surveillance update from Kroll Bond Rating Agency last week, all tenants at Torrance Towne Center are currently open; they have to adhere to Covid restrictions. The property’s mortgage payments have remained current through the pandemic, according to Trepp.

Elsewhere in Torrance, London-based investment firm Charing Cross recently bought a shopping center at 19330 Hawthorne Boulevard from Florida-based Regency Centers for $39.7 million. The area’s logistics market has also held strong despite the pandemic, as the nearby Ports of Los Angeles and Long Beach have both set new cargo records in recent months.





    Related Articles

    arrow_forward_ios
    Unibail Rodamco Westfield CEO Jean-Marie Tritant and Westfield Santa Anita at 400 South Baldwin Avenue (Unibail Rodamco, Getty Images, Google Maps)
    Wen Shan Chang is buyer of Westfield Santa Anita
    Wen Shan Chang is buyer of Westfield Santa Anita
    MetLife's Robert Merck, Chase bank property (Loopnet, Getty, MetLife)
    MetLife wants $150M for Chase bank portfolio across state
    MetLife wants $150M for Chase bank portfolio across state
    Panattoni Development's Carl Panattoni and Rivian's R.J. Scaringe with 1441 Myford Road (Panattoni Development, Getty, Google Maps)
    Rivian leases 219K sf building under construction in Tustin
    Rivian leases 219K sf building under construction in Tustin
    UBS Realty'sMatt Johnson (left) and Rod Chu (right) Shoe Palace's George Mersho (middle) (UBS, LinkedIn, Getty)
    UBS sells Montebello shopping center for $84M
    UBS sells Montebello shopping center for $84M
    Merlone Geier’s Peter Merlone and Brad Geier with 38003 47th Street East (Merlone Geier, LoopNet)
    Merlone Geier sells second Palmdale mall in a month
    Merlone Geier sells second Palmdale mall in a month
    19401 South Vermont Avenue in Torrance (Loopnet, iStock)
    Atlas Capital buys Torrance flex office campus
    Atlas Capital buys Torrance flex office campus
    From left: Centennial Real Estate CEO Steven Levin, USAA Real Estate CEO Len O'Donnell, and Montgomery Street Partners co-founders Murray McCabe and Max Lamont in front of a rendering of the planned redevelopment at MainPlace mall in Santa Ana (Centennial, USAA, Montgomery Street Partners, MainPlace)
    $141M loan on Centennial’s OC mall heads to special servicing
    $141M loan on Centennial’s OC mall heads to special servicing
    Merlone Geier's Peter Merlone and Tabani's Zaffar Tabani with 39340 10th Street West (Merlone Geier Partners, LinkedIn, Google Maps, iStock)
    Palmdale mall fetches $57M from Texas investor
    Palmdale mall fetches $57M from Texas investor
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...