REDONDO BEACH, CA-Construction has begun on a new 117,858-square-foot retail development called the South Bay South Center, according to an investment sales team from United Commercial Realty in Dallas that arranged the equity placement and a pre-sale of the project. The total transaction size is more than $34 million, according to the UCR team, which was led by David Disney, Adam Howells and Kevin Catalani. LaSalle Investment Management will provide the equity and take-out at development completion.

The UCR team, which represented the Dallas-based developer of the property, tells GlobeSt.com that the developer has begun demolition of existing commercial buildings on the site to make way for the new center, which is expected to be completed in about 15 months. The project site is adjacent to the 955,000-square-foot South Bay Galleria Mall owned by Forest City, on land that Forest City sold to the developer.

The UCR team notes that the center is surrounded by some of the most affluent neighborhoods in Los Angeles, and the project is 78% pre-leased. The tenants that have signed include Nordstrom Rack, Sprouts and Total Wine and More.

Howells, managing partner of UCR Investment Sales, notes that the quality tenants, affluent demographics, and a coastal location “created considerable interest from institutional and foreign capital. Disney, president of UCR Investment Sales, calls the location “irreplaceable,” adding that “the tenant line-up and pre-leasing are strong and the sponsorship of LaSalle played an important role in allowing this unique opportunity to become a reality.”

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