LOS ANGELES—In suburban markets, neighborhood retail centers can be hard deals to find. At this peak time in the market, there are owners that are looking to sell, but they may not be bringing these assets to market. Michelle Schierberl, EVP at Colliers International, has just brokered the off-market sale of a neighborhood center in Santa Clarita for $69.5 million, and reached out to a small network of investors for interest.
“A quality retail center on the market today or is available in anyway for purchase is kind of rare,” Schierberl tells GlobeSt.com. “You see properties on the market, but often times, they are not of the same caliber. We stuck to a small buyer pool to fulfill our client's need. We talked to this buyer, and we were able to strike a deal.”
This particular center hit all of the markets for investors. It is 95% occupied with a mix of daily-needs tenants—including LA Fitness, Smart & Final Extra, Coffee Bean & Tea, The Habit, US Bank and Lindora Medical—to protect against ecommerce competition, great demographics and steady daytime and residential traffic. “This is a great community with a pretty affluent demographic, and the retail is performing well,” explains Schierberl. “People are looking for retail that has a tenancy that is insolated from the Internet. A health club and the Smart and Final Extra, which is not just a grocery store but a bulk environment as well, definitely fall into that category. This center also has salons and restaurants to serve the daytime population and the residential population that surround the center.”
Located a 28207-28313 Newhall Ranch Road, the 153,686-square- foot center traded hands between JH Real Estate Partners and Galois Group. Schierberl, who represented both parties with SVP Donald Ellis, decided off-market was the best strategy. “I don't think the seller was looking to necessarily sell,” she says. “They decided to explore it when they refinanced the property.”
While these opportunities are rare, Schierberl did sell another nearby neighborhood center last year. That center also traded off-market and had a low cap rate. Located in the same market, it also attracted strong interest from the investors in Schierberl's network.
LOS ANGELES—In suburban markets, neighborhood retail centers can be hard deals to find. At this peak time in the market, there are owners that are looking to sell, but they may not be bringing these assets to market. Michelle Schierberl, EVP at Colliers International, has just brokered the off-market sale of a neighborhood center in Santa Clarita for $69.5 million, and reached out to a small network of investors for interest.
“A quality retail center on the market today or is available in anyway for purchase is kind of rare,” Schierberl tells GlobeSt.com. “You see properties on the market, but often times, they are not of the same caliber. We stuck to a small buyer pool to fulfill our client's need. We talked to this buyer, and we were able to strike a deal.”
This particular center hit all of the markets for investors. It is 95% occupied with a mix of daily-needs tenants—including LA Fitness, Smart & Final Extra, Coffee Bean & Tea, The Habit,
Located a 28207-28313 Newhall Ranch Road, the 153,686-square- foot center traded hands between JH Real Estate Partners and Galois Group. Schierberl, who represented both parties with SVP Donald Ellis, decided off-market was the best strategy. “I don't think the seller was looking to necessarily sell,” she says. “They decided to explore it when they refinanced the property.”
While these opportunities are rare, Schierberl did sell another nearby neighborhood center last year. That center also traded off-market and had a low cap rate. Located in the same market, it also attracted strong interest from the investors in Schierberl's network.
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