Flat Retail Doesn’t Slow Grocery Center Investment

The property is co-anchored by a Ralphs and Rite-Aid.

LOS ANGELES—Despite quarterly reports showing flat retails sales, retail investment in grocery anchored centers, at least here in Los Angeles, remains strong. Inland Retail Property Fund, a newly formed acquisition arm of Inland Capital Partners Corp., has acquired North Village Square for $58 million in a highly competitive transaction that garnered more than a dozen offers from institutional buyers. The name of the seller was not disclosed, however, sources unrelated to the deal tell GlobeSt.com that TIAA sold the property.

“Interest in the property was very high, and that is because, with the Ralphs grocery store, the center performs very well,” Michelle Schierberl, SVP at Colliers International, tells GlobeSt.com. “Institutional buyers want to have a neighborhood grocery centers because they feel that they are recession proof, and they want to hold centers that are top performers, like this, in their portfolio. This center was a really strong performing asset, and because it has tenants that report and the sales can be backed up, it was really attractive to this group of buyers.” Schierberl represented the seller in the transaction, along with SVP Don Ellis. Matthew Tice, SVP of Inland Real Estate Acquisitions, advised the buyer.