No cheap chic for Gryphon Capital.
The Los Angeles-based developer has put an under-construction Target up for sale in Huntington Park with a hefty price tag.
The Los Angeles-based investment firm is asking $58.4 million for the 56,000-square-foot building and accompanying property for parking in southeast Los Angeles County.
The price comes to $1,044 per square foot–almost six times what Gryphon Capital paid for the land for the site in March of last year. The company bought four parcels to assemble the property, paying a total of $10.8 million, public documents filed with the County of Los Angeles.
Target, which is considered a credit tenant, is opening the store this year and has nearly 16 years left on its lease. The company is paying $39.16 per square foot per year on the property — around $3.26 per square foot per month — for a total of around $2.2 million every year.
Rents for the property are to be increased by 10 percent every five years.
Target is also investing $14 million for a buildout at the property, in addition to what Gryphon Capital is spending on construction.
If the Target property trades at its asking price, the sale would beat out last year’s most expensive retail deal at a per square foot price.
In December, German investment firm Deka Immobilien bought a Whole Foods in Santa Monica for $1,022 per square foot — a total of $54 million.
Target, like other big box retailers and grocers, fared well during the pandemic. The company reported $104 billion in sales in 2021 — a 13 percent increase from $92 billion in 2020 and a 35 percent increase from $77 billion in 2019, according to financial filings.
The retailer is planning to open nine new stores throughout California this year, including the Huntington Park location.
Around 56,000 people live in Huntington Park, according to U.S. Census data. These people, along with populations in South Gate, Lynwood, Vernon and Bell currently have to travel to East L.A. or South Gate to go to Target.
This isn’t Target and Gryphon Capital’s first deal. In October, Gryphon Capital signed Target to a lease at 12980 Foothill Boulevard in Sylmar — a strip mall property Gryphon then bought in January for $36 million, records show. The property currently houses a Home Depot, a Starbucks and other restaurants.