ROLLING HILLS ESTATES, CA—Vestar, in a joint venture with a fund advised by UBS Global Asset Management, has acquired Peninsula Center, a 300,000-square-foot retail center located on 24.7 acres in the affluent city of Rolling Hills Estates in Los Angeles County for $87.3 million in an all cash transaction. The acquisition marks Vestar's second Southern California retail center acquisition in the past six months. In September 2012, the firm acquired Riverside Plaza for $84.84 million.

“Peninsula Center provides us with a value-added investment opportunity in a in a tight coastal market,” said Jeff Axtell, Vestar Vice President of Acquisitions and Development. “Our goal is to significantly upgrade the center with new landscape and amenities while bringing in new retailers."

Axtel added that the firm is very bullish about these types of value-added investment opportunities and are aggressively seeking more properties like it throughout the West.

"Peninsula Center is one of the premier retail centers in Los Angeles and we are excited to be adding it to our portfolio ," noted Axtell. "The property provides Vestar with stable cash flow with excellent demographics."

Located on the Palos Verdes Peninsula in the affluent city of Rolling Hills Estates, Peninsula Center is 88 percent leased and anchored by Vons Pavilions, Rite Aid, TJ Maxx. The center also features other nationally-recognized tenants including Spectrum Health Club, Pier 1 Imports, and Petco. Peninsula Center is ideally situated along Hawthorne Boulevard, the South Bay's primary north-south thoroughfare with 57,000 vehicles passing by each day, providing tremendous exposure and identity.

The Eastdil Secured team of Christopher Hoffman, Rikki Keating and Thao Tran represented the seller, Principal Real Estate Investors, in the transaction. Vestar represented itself in the transaction.

Instant Insights /

Vestar and UBS Drop $87M for Retail Property

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