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
    A sign posted outside of a Los Angeles deli (Getty)
    LA County will require vaccinations to enter bars, restaurants, businesses
    LA County will require vaccinations to enter bars, restaurants, businesses
    Rexford Industrial Realty Co-CEOs Michael Frankel and Howard Schwimmer with the property (Rexford, Newmark)
    Rexford pays $182M for Torrance industrial campus
    Rexford pays $182M for Torrance industrial campus
    Renderings of Third and Arizona Town Square after the proposed Third Street Promenade Stabilization and Economic Vitality Plan (Downtown Santa Monica)
    Santa Monica’s Third Street Promenade could open up to housing, hotels
    Santa Monica’s Third Street Promenade could open up to housing, hotels
    Richemont Group CEO Jérôme Lambert and 411 N Rodeo Dr (Getty, Google Maps)
    Richemont will take over Guess store on Rodeo Drive
    Richemont will take over Guess store on Rodeo Drive
    The retail development known as The Source was completed in 2016 (The Source)
    M+D Properties looks to offload 600K sf mixed-use complex
    M+D Properties looks to offload 600K sf mixed-use complex
    Stan Kroenke and Malibu Colony Plaza (Getty, Newmark Knight Frank)
    Here’s what tenants pay at Stan Kroenke’s Malibu Colony Plaza
    Here’s what tenants pay at Stan Kroenke’s Malibu Colony Plaza
    Culver Steps and Hackman Capital Partners CEO Michael Hackman (Photos via The Culver Steps, Hackman Capital)
    Hackman inks Erewhon market to space at Culver Steps
    Hackman inks Erewhon market to space at Culver Steps
    Eastern Real Estate — led by Brian Kelly and Daniel Doherty, above — and Atlas Capital Group acquired Eagle Rock Plaza (Eastern Real Estate)
    450K-sf Eagle Rock mall sells; buyers may add resi complex
    450K-sf Eagle Rock mall sells; buyers may add resi complex
    arrow_forward_ios

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

    Loading...