CorAmerica Invests $90M in Suburban LA Retail Property
CorAmerica Capital has added 254,000 square feet of retail to its holdings with the recent acquisition of Nordhoff Plaza, a Class A community center in Northridge, Calif. The real estate investment firm made the purchase in a joint venture with an institutional partner at a total capitalization of approximately $90 million.
It’s got the right location. Occupying approximately 15 acres, approximately 25 miles outside of downtown Los Angeles, Nordhoff Plaza has the advantage of sitting within a high-density submarket in the San Fernando Valley. The property, which underwent a $35 million renovation in 2008, also benefits from its close proximity to the 1.5 million-square-foot Northridge Fashion Center, which sits just across the street.
Additionally, Nordhoff Plaza has a sizeable list of national retailers in anchor positions, including Bed Bath & Beyond, Best Buy and Office Max. However, what the shopping center does not have is a full tenant roster, and therein lies the value-add opportunity for CorAmerica. The current vacancy rate in the San Fernando Valley retail market is just 5.01 percent, according to a second quarter report by commercial real estate services firm Voit Co.
CorAmerica has tapped Wilson Commercial to spearhead leasing at the property. Additionally, the company will make additional capital improvements.