WHITTIER, CA-Phoenix-based Cole Real Estate Investments has acquired 533,518 rentable square feet of retail space at the Whittwood Town Center for $83.5 million, according to a public filing by Cole Credit Property Trust III Inc, a nontraded REIT. Cole acquired the property from Morgan Stanley's Prime Property Fund, which was represented by Downtown Los Angeles-based executive managing director Marc Renard of the Cushman & Wakefield Capital Markets Group and his team.
The Whittwood Town Center, at 15608 Whittwood Lane, was 96.4% occupied at the time of closing, with a tenant roster including Target, Sears, JC Penney and others, according to the Cole public filing. The property was originally constructed in the 1950s but was redeveloped in 2004.
Scott Holmes, vice president of acquisitions for Cole, tells GlobeSt.com that the investment firm was attracted to the acquisition by "the high-credit quality and long term leases of the tenants, particularly the 20-plus-year ground lease with Target, as well as the supply-constrained nature and density of the location."
According to Renard, the Whittwood center generated more than 20 offers from a variety of types of investors, including pension funds, private REITs, offshore buyers and others. He tells GlobeSt.com that, "The pricing and the significant investor interest are a testimony to how sought-after core urban infill real estate is," especially properties like Whittwood with a very stable tenancy in areas with high barriers to entry.
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