X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

SouthLakeAve

LOS ANGELES—Macy’s Inc. has sold the five-acre land site beneath the Shops on Lake Avenue in Pasadena to an unnamed private investor. The land site is a rare fee-simple ground lease and shadow anchored by the department store chain. Although this is an unrelated transaction, it comes on the heels of Macy’s closing several stores throughout the US last year. The terms of the transaction were not disclosed.

The Shops on Lake Avenue is 131,153 square feet of retail space and a roster of national credit tenants. As a result, it attracted strong interest from potential investors. “The transaction exemplifies the strong interest of investors to purchase and retain retail investment property in strong markets and in the high-performing retail districts of Southern California,” Carlos Lopez, EVP of Hanley Investment Group, tells GlobeSt.com. Lopez and senior associate Lee Csenar represented the seller in the transaction, while the buyer represented itself. It is rare to find a land site on a fee-simple ground lease, like this, and a rare opportunity to buy well-located acreage in Pasadena. The lease term has 61 years remaining, and it includes two 10-year extension options. “The property’s income stream had stipulated increases during the term, while there were stipulated increases during the term of the lease, there were not significant adjustments in the lease until over 40 years in the future,” adds Lopez. The brokerage team received 20 total offers within 30 days before ultimately narrowing it down to three to four final bidders.

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?

Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on GlobeSt.com and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.

More from this author

 

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 © 2022 ALM Global, LLC. All Rights Reserved.