$66M Takes Promenade Center

VALENCIA, CA-CPF Promenade LLC has purchased the 182,477-sf Promenade at Town Center from developer RKR Inc. for $66 million in one of the largest retail transactions in Los Angeles County in recent months. The center, which opened in 2002, was 100% leased at the time of the sale, reports Barry Rothstein of the Encino office of NAI Capital Commercial, who brokered the transaction.The Promenade center is located across from the Hyatt Valencia Hotel & Conference Center at the intersection of McBean and Magic Mountain Parkways. It is occupied by a mix of credit and national tenants including the Vons supermarket chain's Pavilions market, HomeGoods, Olive Garden, Tilly's, Peet's Coffee and McDonalds. The center was developed by Encino-based RKR, which is headed by Ron Rasak, the company's founder, president and CEO.At the time the Promenade property went on the market last year, Rothstein described 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.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 Inc., which has developed shopping centers in Southern California for nearly 20 years, is now under way on the 150,000-sf Gateway Village, scheduled to open in spring 2005 across from Home Depot and the new Wal-Mart at Newhall Ranch Road and Rye Canyon Road in the Santa Clarita. Like Promenade at Town Center, Gateway Village will feature Tuscany style architecture, lush landscaping and pedestrian walkways. Gateway Village is currently 80% preleased with national and strong regional tenants, notes Rasak.