SHERMAN OAKS, CA—A well-known shopping centerin Sherman Oaks, CA has traded hands for $16.8 million for thefirst time since the original owner purchased the center after itwas built in 1960. The Festival Cos. of LosAngeles acquired the center from a privatefamily, who sought to capitalize on the currentmarket.

At the time of purchase, the family owner had arranged for thedeveloper of the property to remain the operator of the center. Theoriginal 55-year lease expired this year, reverting back to theoriginal owner. The buyer, the Festival Cos., purchased the assetas part of a 1031 exchange. It recently sold theGucci retail property on Rodeo Drive, which itoriginally purchased in 2007 for $30 million. Thebuyer plans to remain both the owner and operator of the asset.

The $16.8-million sale price equates to $550 per square foot,one of the highest prices per square foot in the area. The saleattracted many potential buyers who sought to rezone and redevelopthe site.