Tova Capital has teamed up with Shopton Capital to acquire a 7,500-square-foot, free-standing retail building in downtown Santa Monica for $5.5 million.
Originally developed in 1981, it sits on a 15,000-square-foot corner lot at the signalized intersection of Wilshire and Lincoln Boulevards, which sees 50,000 drivers per day.
Tova founding partner Ron Harari told GlobeSt.com, “I loved that the investment provided multiple paths to success as a value-add retail play in the short term and long-term development potential."
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“The ability to acquire a trophy location like this doesn’t come around often, and in my experience, investments like this tend to surprise to the upside.”
There is surface parking at 2.4/1,000 and expansive frontage along Wilshire, one of Los Angeles’ major thoroughfares that stretches from the city's downtown area to the Pacific Ocean.
Some 2,300 multifamily units are underway nearby, and significant recent prominent retail lease signings, such as Fogo de Chao, Din Tai Fung and Google, add to the location’s allure.
This is part of downtown Santa Monica’s retail resurgence that has followed a challenging post-COVID leasing environment, according to Harari.
At closing, the property was 40% leased to Commercial Bank of California.
Upgrades are planned for the property, including a new storefront, exterior lighting upgrades, painting and facade enhancements to reduce lease vacancy and stabilize the property.
Tova was represented by Luc Hawkshaw, Eric Mandell, and Jeffrey Ahn from Ally Commercial during the transaction. Ryan Gurman of CBRE is handling the leasing efforts.
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