Gryphon Capital aims for new high on retail with listing of Target site in Huntington Park

Seeks $1,000 psf store for leased big box in blue-collar enclave of southeastern LA County

Los Angeles /
Mar.March 31, 2022 11:30 AM
(iStock)

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.





    Related Articles

    arrow_forward_ios
    Prologis' Hamid Moghadam and 8819 E Edison Ave in Ontario (Google Maps, Prologis)
    Prologis gets option on 177 more acres in Ontario Ranch
    Prologis gets option on 177 more acres in Ontario Ranch
    SRG's Chris Payne and Burnham Ward's Bryon Ward with rendering of New Laguna Niguel City Center (Sares Regis Group, Burnham Ward Properties)
    ‘Napa Valley-esque’ downtown to be built in Laguna Niguel
    ‘Napa Valley-esque’ downtown to be built in Laguna Niguel
    LaTerra Development's Charles Tourtellotte with 4112 Del Rey Avenue (LinkedIn, Loopnet)
    LaTerra buys Marina del Rey office complex
    LaTerra buys Marina del Rey office complex
    CIM’s Shaul Kuba with renderings of the project at 6007 Sunset Blvd in Hollywood (Getty, CIM Group)
    CIM sells site of 109-unit resi development in Hollywood
    CIM sells site of 109-unit resi development in Hollywood
    Councilman Bob Blumenfield with 5300 N. Oakdale Ave (Dean Musgrove, iStock)
    Last commercial orange grove in the San Fernando Valley slated for luxury homes
    Last commercial orange grove in the San Fernando Valley slated for luxury homes
    From left: Stockdale Capital Partners' Steven and Shawn Yari with 656 San Vicente Blvd
    Stockdale Capital gets early green light for 140K sf medical tower near Cedars-Sinai
    Stockdale Capital gets early green light for 140K sf medical tower near Cedars-Sinai
    HBC's Richard Baker with  9600 Wilshire Blvd (SFA, Cornell)
    Historic Saks Fifth Avenue complex in Beverly Hills eyed for redevelopment
    Historic Saks Fifth Avenue complex in Beverly Hills eyed for redevelopment
    Clear Capital LLC founding partners (L-R) Daniel Hardy, Eric Sussman, Paul Pellizzon and Greg Worchell with Foothill Ridge apartments, 1334 W. Foothill Blvd., Upland (Clear Capital LLC, Foothill Ridge Apts.)
    Clear Capital buys 232-unit apartment complex in Inland Empire
    Clear Capital buys 232-unit apartment complex in Inland Empire
    arrow_forward_ios

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

    Loading...