Investors were a bit more confident in retail real estate in 2021, as pandemic restrictions started to ease for brick-and-mortar stores and visions turned to redevelopment plans that include housing.
The priciest retail sale last year hit $136 million —about 10% more than 2020’s leader, although still notably below 2019’s top mark of $325 million.
Retail real estate also saw a large spread in terms of price per square foot last year, with some top deals trading more than $1,000 a square foot and others going for around $135.
Here are the top retail sales for 2021:
1. Burbank Town Center | $136 million | Onni Group
(Source: Burbank Town Center)
In October, Onni Group purchased the 1 million-square-foot retail center in Burbank for $136 million. The Toronto-based developer bought the property at 201 East Magnolia Boulevard from Barings and Cypress Equities.
Though it took the top spot, the deal was one of the lowest prices in terms of square footage, coming in at $136 per square foot.
Onni has been a particularly active retail investor this year, also buying a 68,500-square-foot retail complex in Long Beach for $68 million.
2. Baldwin Hills Crenshaw Plaza | $111 million | Harridge Development
(Source: LoopNet)
Marking this year’s second largest sale is Harridge Development’s purchase of the Baldwin Hills Crenshaw Plaza for $135 million.
The 820,000-square-foot mall was sold in August by Capri Capital Partners, which had faced two scrapped sales over the last year. Backlash from local community groups, some of whom argued the mall should be owned by members or representatives of Black communities from the area rather than a large outside investment firm, led CIM Group to drop a bid for the property in 2020.
Harridge is now planning to spend $1 billion to redevelop the project at 3650 Martin Luther King Jr. Boulevard into housing, office space and retail space. The firm also spent $30 million to buy a Macy’s department store next door.
The deal came in at $135 per square foot, the lowest price per square foot for the top deals this year.
3. Eagle Rock Plaza | $76 million | Atlas Capital Group, Eastern Real Estate LLC
(Source: Atlas Capital Group)
In June, Atlas Capital Group and Eastern Real Estate purchased a 462,800-square-foot complex at 2700 Colorado Boulevard for $76 million. The firms bought the property from LNR Partners, which had first listed the property in January 2020.
Atlas and Eastern Real Estate are considering adding a residential complex at the 22-acre shopping center, which offers a Target and a Macy’s among other stores.
The deal came out to around $164 per square foot.
4. SouthBay Pavilion | $68 million | Atlas Capital Group
(Source: Seritage Growth Properties)
Atlas Capital made the list for a second time with its purchase of a 459,300-square-foot retail complex in Carson for $68 million — around $148 per square foot. The firm bought the South Bay Pavilion at 20700 South Avalon Boulevard from PCCP in December.
JCPenney, Target and Burlington Coat Factory are among tenants at the property.
5. Marina Shores Shopping Center | $68 million | Onni Group
(Source: MapQuest)
In November, Onni Group bought a 68,500-square-foot property in Long Beach for $68 million — one of the more expensive deals in terms of price per square foot, at $991 a foot.
The firm bought the complex at 6600 Pacific Coast Highway from Regency Centers and the Oregon Public Employees Retirement System.
The property will be entirely redeveloped to include multifamily housing, according to the Long Beach Business Journal.
6. Home Depot in Glendale | $62 million | Charing Cross Partners
(Source: LoopNet)
Local investment firm Charing Cross Partners bought a 111,600-square-foot Home Depot at 5040 San Fernando Road in Glendale for $62 million — around $553 per square foot. Decron Properties sold the property in August.
The property includes a 94,530-square-foot Home Depot store and a 17,094-square-foot outdoor garden sales area.
7. Whole Foods | $54 million | Deka Immobilien
(Source: Travel Guides)
This year’s most expensive deal in terms of price per square foot was a Whole Foods in Santa Monica. German investment firm Deka Immobilien bought the 53,000-square-foot upscale grocery store for $54 million — or around $1,022 per square foot.
Tooley Investment Company sold the property, located at 2121 Cloverfield Boulevard, in November.
Grocery stores fared well during the pandemic, compared to other sects of retail, given that the properties were not subject to closures.
8. Longo Lexus | $51 million | Realty Income Corporation
(Source: LoopNet)
In March, Realty Income Corporation sold the site of a Lexus dealership at 3530 Peck Road in El Monte for $51 million — around $176 per square foot. West Coast-based retail investor Merlone Geier Management sold the 292,205-square-foot property.
9. North Hills Plaza | $37 million | Home Depot
(Source: LoopNet)
In October Home Depot sold a 95,600-square-foot strip mall filled with other retailers at 16826 Devonshire Street in Los Angeles for $37 million, or around $387 per square foot.
ACF Property Management sold the property, which is leased to CVS and Ralph’s, among other tenants.
10. Valley Plaza | $34 million | Gryphon Capital
(Source: LoopNet)
Rounding out this year’s list is Gryphon Capital’s $34 million purchase of a retail property at 12121 Victory Boulevard in North Hollywood.
Seritage Growth Properties sold the property in May for around $218 per square foot. The strip mall includes a Ross and a Burlington Coat Factory.