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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.

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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.

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