LOS ANGELES—A private investor has acquired the Huntington Plaza, a 57,148-square-foot, Sprouts -anchored shopping center in Monrovia. Although the purchase price of the sale was undisclosed, industry sources reveal the price was approximately $26 million with a 5% cap rate.
The sale of this property generated strong interest, receiving 19 offers from both private and institutional investors. “The selected buyer, who had excellent local knowledge and strong advisors, was able to definitively demonstrate the ability to close the transaction within an expedited timeframe,” says Kyle Miller, Studley corporate managing director, who represented the seller in the transaction along with EVP Bill Bauman, managing director Steve McDonald and Colliers International SVP Armando Aguirre. The two companies have also handled the center’s leasing efforts for the last six years and will continue to provide leasing services for the new owner.
The center is 96% leased and anchored by a Sprouts market and a Walgreens. McDonald’s, Jersey Mikes, Flame Broiler and Great Clips are among the other occupants. In 2010, the seller renovated the property extensively, which resulted in lease deals with Sprouts and Walgreens and a long-term lease extension with McDonalds. “The seller invested the capital needed to enhance the appeal of the center, attract tenants, and ultimately realize a very rewarding sales price,” says Bauman.
Retail centers anchored by smaller chain grocery stores are becoming increasingly popular in this market. Late last year, GlobeSt.com reported the sale of Plaza De La Cañada for $35.9 million. The 100,408 shopping center was purchased by Retail Opportunity Investment Corp., who replaced the exsisting Vons with a Gelson’s Market in the anchor space as part of the transaction.