Terms of the deal were not disclosed, but the seller, Kital-Pico of Los Angeles, is believed to have been asking $25 million for the parcel, which is one of the few relatively large vacant sites available for development in a densely populated part of Los Angeles. The sale was a direct deal between CIM and Kital-Pico.
The CIM Group, one of the most active developers of urban and infill projects in the city, has not announced specific plans for the retail center, but it is looking to court large retailers like Costco and Home Depot that are making efforts to expand into urban markets. The site is entitled for a shopping center under permits obtained by Kital-Pico when it owned the property. CIM calls it "one of the largest properties zoned for commercial use north of the 10 Freeway and west of the 110 Freeway." Shaul Kuba, a principal and co-founder of CIM Group, describes the demographics of the area as "very attractive for retailers."
The purchase of the development site is the latest in a series of Los Angeles projects either planned or under way by CIM Group. Recently, it broke ground for a new Ralphs supermarket in the South Village section of Downtown Los Angeles, a project considered a key to revitalization of downtown city life. Another recently started project is the renovation of the firm's TV Guide Hollywood Center office tower along Hollywood Boulevard at Orange Drive, where it will create 20,000 sf of new storefronts. The company's portfolio includes retail, housing and office properties at Santa Monica's Third Street Promenade, Old Pasadena, Birch Street in Brea, Downtown Los Angeles, Hollywood Boulevard, San Diego's Gaslamp Quarter and San Jose's Downtown.
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