LOS ANGELES—San Diego-based Retail Opportunity Investments Corp. will purchase Fallbrook Shopping Center for $210 million in cash. The property is located in West Hills, CA and is one of the leading shopping centers serving the West San Fernando Valley, a densely-populated, affluent community within the Los Angeles metropolitan area.
Fallbrook Shopping Center has approximately 1.12 million square feet of gross leaseable area—762,000 square feet of owned GLA. ROIC expects to close the transaction during the second quarter of 2014.
Stuart A. Tanz, president and CEO of Retail Opportunity Investments Corp. notes that "Fallbrook is one of the strongest shopping centers in the San Fernando Valley and is an excellent strategic fit with our existing portfolio, given its location and market position, as well as its diverse mix of tenants, many of which are necessity-based retailers.”
In addition to the strategic attributes, he adds, “we expect that the transaction will be immediately accretive and enhance our long-term, stable cash flow.”
Going forward, Tanz says, “there are opportunities to increase cash flow and enhance value through implementing a variety of leasing, repositioning and development initiatives, as well as capitalizing on economies of scale and operating synergies. We look forward to integrating Fallbrook into our portfolio, as one of our flagship properties.”
Some key tenants at the property include three supermarkets—Ralph's, Trader Joe's and Sprouts—as well as WalMart, Home Depot, Target, and Kohl's.
As of March 31, 2014, ROIC owned 56 shopping centers encompassing approximately 6 million square feet. The company did not provide further details regarding the transaction with GlobeSt.com before deadline but we will update as we learn more.
As GlobeSt.com previously reported, the retail REIT had analysts placing a buy rating on it in the month of May thanks to its 'strong leasing and acquisitions pace.' To read more about that rating and the company's first quarter earnings, click here to read the full article.
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