Cornerstone Buys $30M Retail Center

Michelle Schierberl of the Newport Beach office of Grubb & Ellis reports that the transaction included two ground leases on the property, which is at 27706-27776 McBean Parkway and was 100% leased at the time the sale closed. Schierberl was part of a Grubb & Ellis team including Tom Lagos and Ken McLeod of the firm's West Los Angeles office that represented the buyer and the seller. The property is leased to a tenant roster including Ralphs, Rite Aid, Starbucks, Blockbuster, Wells Fargo and Exxon. Seller Lennar acquired the retail center as part of its acquisition of the Newhall Land and Farming Co. The buyer of Northpark Village Square Cornerstone, manages investments in a portfolio of more than $4.5 billion in real estate assets on behalf of public and corporate pension funds, endowments, foundations and insurance companies. Its parent corporation is Massachusetts Mutual Life Insurance Co.The sales price of more than $342 per sf for a center on ground leases reflects the strong demand for retail properties in general and the particular appeal of properties in the Valencia and Santa Clarita areas. Retail experts say that well-leased shopping centers throughout L.A. County are in demand, with areas like Valencia and Santa Clarita ranking high in the estimation of investors because they are new, master planned communities. The nearly completed community of Valencia comprises approximately 23,000 single-family homes and the future Newhall Ranch project is planned for 20,885 homes. Valencia is part of the City of Santa Clarita, which is one of the fastest growing cities in California and the fourth largest city in Los Angeles County.