The seller was Woodland Hills-based Rye Canyon Gateway PlazaLLC, an affiliate of RKR, the original developer of Gateway Villagein 2005. The property is occupied by a roster of national credittenants such as LA Fitness, Smart & Final, California NationalBank, Lindora Medical and others.

According to president Richard Walter of Irvine-based Faris Lee,the fast-growing Santa Clarita area "offers high-quality retailproduct is attracting institutional-quality investors, such asGrosvenor, who have identified this area as one that will offerpromising returns year after year." Walter, who represented theseller along with managing director Donald MacLellan of Faris Lee,notes that the Gateway Village property is the second significantretail center sale that Faris Lee has completed in Valencia overthe past 10 months.

Walter notes that the deal posed a challenge for the Faris Leeteam when a 20,000-sf tenant announced that it would vacate theproperty after the center had been priced. Faris Lee thenrestructured the pricing based on the vacancy.