GE Venture Buys 99,000-SF Center for $41M

Constructed in 1991 and renovated in 2002, the retail center is anchored by Bed Bath & Beyond and Bally's Total Fitness. It was 97% occupied at the time of the sale.

The joint venture of GE Real Estate and Santa Monica-based Levy Affiliated Holdings bought the property from Encino Retail Group LLC. Both the buyer and the seller were represented by Tom Lagos and Kyle Miller of the West Los Angeles office of Grubb & Ellis.

According to Lagos, the transaction underscores the growing number of off-market transactions taking place in a market where "quality assets like Encino Courtyard are in incredibly high demand, but in short supply." Besides its high occupancy and credit tenants, the property benefits from a location in a densely populated area with very high daily traffic counts.

This was the first equity transaction between GE Real Estate and Levy Affiliated Holdings, a real estate investment and asset management company that focuses on acquiring properties in the Southwestern US. The Santa Monica-based firm's portfolio is valued at approximately $380 million.

Shaoul J. Levy, CEO of Levy Affiliated Holdings, points out that GE's participation was a key to completing the transaction. Levy cites "GE Real Estate's ability to close the equity gap required to complete this deal, despite a challenging debt market environment."

According to Christian Garner, managing director for GE North America Equity, the firm has plans for collaborating on additional deals with Levy in the near future. Levy is one of a number of partners that GE has joined with in acquisitions lately, including an Orange County deal reported this week on GlobeSt.com.

In the Orange County deal, GE Real Estate invested $120 million with the Laguna Niguel-based Muller Co. to acquire 19 assets comprising 30 buildings. Known as the SDM portfolio, the acquisition included office, industrial and retail assets in Southern California and Arizona.