HAWTHORNE, CA-A 1031 exchange buyer has acquired the 60,472-sf Hawthorne Exchange shopping center for nearly $25.3 million in a deal that included a loan assumption and another related acquisition, according to Faris Lee Investments. The buyer assumed a loan and also bought an additional property in order to complete the 1031 exchange for the shopping center, which is at 2831-2909 W. 120th St.

The buyer was West 120th-Hawthorne LLC, which acquired the property from Ironwood Hawthorne LLC in a transaction brokered by Richard Walter and Dennis Vaccaro, president and director respectively of Irvine-based Faris Lee, on behalf of the seller. The buyer was represented by Douglas Nye of Manco Development.

Walter says that the Faris Lee marketing campaign targeted private investors with experience in operating properties within Los Angeles County. He describes the Hawthorne Exchange as a quality center with a strong mix of tenants and great location in a densely populated area. The property generated eight offers and closed at a 6% cap rate.

Vaccaro says that the buyer assumed an in-place, 10-year 5.6% fixed-rate loan through October 2015, which is superior to today’s current rates, creating a good cash flow opportunity for the buyer. In order to facilitate the buyer’s 1031 equity requirement, Faris Lee also worked in conjunction with the buyer and its broker to acquire an additional retail property in the Greater Los Angeles area for $3.25 million in order for the buyer to complete its trade.

Built in 2005 and 2006, Hawthorne Exchange is situated on seven acres and was 97% occupied at the close of escrow. Tenants include 24 Hour Fitness Magic Johnson Sport, Starbucks, Sprint/Nextel, the UPS Store, Quiznos, Juice it Up, Countrywide Home Loans and Wescom.

Walter notes that the site also benefits from a new Lowe’s store and Levitz Furniture showroom located directly across the street, making the area a significant retail destination. The center is visible to more than 478,000 cars per day that travel the 105 Freeway, and benefits from monument signage visible from the freeway and nearby roadways.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Dig Deeper

GlobeSt Net Lease Spring 2024Event

This conference brings together the industry's most influential & knowledgeable real estate executives from the net lease sector.

Get More Information
 

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.