L.A.’s Eastside Attracts Street-Front Retail Buyers

The Eastside of Los Angeles has a big appeal for retail investors. With the retail niche trending toward unique offline experience, the Eastside, known for its eclectic culture and artist communities, has been has the experiential quality that investors are looking for. An affiliate of Optimus Properties has sold a two-store street-front front retail property on North Figueroa Blvd., in Highland Park, for $658 a foot. The owner had executed a capital improvement plan to upgrade the property, and was approached by several investors to sell the property in an off-market transaction for a significant sales price.

“We did not market this deal but sale, but we received several off market offers and ultimately went with the highest offer.  While we loved the asset, the sales price was too good to turn down,” Kamyar Shabani, a co-owner of Optimus Properties, tells GlobeSt.com. While Optimus had not brought this property to market, it does plan to sell several assets this year, including two office buildings.

Highland Park is one of the most popular markets on the Eastside. The neighborhood has grown in popularity, and it has been profiled in the New York Times. “Highland Park has seen incredible growth over the last few years.  Many retailers, whether they are new concepts or existing business, have been drawn to HP given the affordability of commercial real estate there and its proximity to core areas of Los Angeles,” says Shabani.

An unnamed private real estate investor purchased the property. It is fully leased to The Bearded Beagle, a vintage clothing boutique, and the barbershop Pantaleon. “When we purchased the asset, it hadn’t been renovated in 60-plus years.  We completely redid the building, giving is a new modern façade,” adds Shabani.

Increasing retail and consumer interest in the area has also attracted new capital and has pushed up asset values. Despite the increase in demand, Shabani says that the market is still emerging and evolving, and there are opportunities. “It still has room to grow,” he says. “There is already an incredible roster of tenants in Highland Park, and only more to come.” Most of the tenants in the market are boutique brands that create an experience. In addition, there are several eateries, services and fitness brands that have entered the market, like Afters Ice Cream, Blind Barber and Pop Physique.

Optimus continues to look for other opportunities in Highland Park in both commercial and housing assets. “We are looking retail, multifamily and single family opportunities in Highland Park,” says Shabani. “We are currently renovating a single-family home in the neighborhood for sale as well.”