$77M Center Hits The Market

Rothstein describes the grocery-anchored center to GlobeSt.com as "one of a kind" in the sense that centers of this size and quality in growing communities like Valencia are placed on the market relatively rarely. "We have good interest in it already" from prospective buyers, says Rothstein, who is based in the Encino office of NAI Capital Commercial.

Sherman Oaks-based RKR, a Southern California developer that is headed by president Ron Rasak and focuses on the Valencia market, completed the Promenade in 2002. It is fully leased and is located across from the Valencia Town Center Regional Mall and the 250-room Hyatt Valencia Hotel and Conference Center at the intersection of McBean Parkway and Magic Mountain Parkway. Some 86% of the tenants are credit and national companies that include Pavilions, HomeGoods and McDonalds.

Another factor that renders the property highly unusual if not unique in terms of listings, Rothstein says, is that, "With the exception of potential expansion of the existing regional mall, there will be no further retail center development in the master planned retail corridor of the Valencia Town Center." The center is surrounded by two large master planned residential communities, the nearly completed Valencia of approximately 23,000 single-family homes and the future Newhall Ranch project, planned for 20,885 homes. Valencia is part of the city of Santa Clarita, which is one of the fastest growing in California and the fourth largest city in Los Angeles County.

RKR has developed shopping centers in Southern California for the past 18 years. It is scheduled to break ground in March on a 155,000-sf project that will be its sixth shopping center in Valencia.