Combined, Saban Buy 173 KSF Shopping Center in the Golden State
- Jun 20, 2013
Combined Properties Inc. continues its West Coast expansion with the purchase of The Terraces, a 173,000-square-foot community shopping center in Rancho Palos Verdes, Calif., with its new joint venture partner, Saban Capital Group.
The purchase price was not disclosed. The JV bought the shopping center, located in the affluent Los Angeles suburb, from Terraces Ranchos Palos Verdes, L.L.C., a private North California-based real estate company that acquired the property in 2005.
Bill Bauman, executive vice president, Kyle Miller, corporate managing director, and Marc Navarro, all of Studley’s National Retail Services Group, represented the seller. Combined Properties managed the acquisition through its Beverly Hills, Calif., office.
“Los Angeles continues to be a primary market for both institutional and private investors looking to deploy capital. The seller of The Terraces took advantage of the high demand for retail infill opportunities,” Miller said in a release from Studley.
“Combined Properties, who has a history of successfully repositioning retail properties, recognized the opportunity to more fully leverage Rancho Palos Verdes’ wealthy demographics and take an already flourishing center to the next level,” Miller added.
Tenants of the shopping center, which is 90 percent leased, include Trader Joe’s, Marshalls, LA Fitness, Starlight Cinemas and more than two dozen other local and national merchants. Built in 1959, the center at 28821-28901 South Western Ave., attracts shoppers from the south side of the Palos Verdes Peninsula and communities of Palos Verdes Estates, Rancho Palos Verdes and San Pedro.
Combined Properties, a real estate development and asset management company based in Washington, D.C., owns more than 40 shopping centers and mixed-use properties in a 5 million-square-foot portfolio located in Southern California, Washington, D.C., Virginia and Maryland. The Terraces is the first purchase made by the new joint venture between Combined Properties and Saban Capital Group through a fund dedicated to buying more than $200 million of value-add, retail shopping centers in Southern California and the Washington, D.C. metro area. Saban Capital is a Los Angeles-based private investment firm specializing in media, entertainment, communication and real estate industries.
“Combined Properties continues to grow its presence in Southern California. Our joint venture with Saban Capital Group provides us with the business partner and firepower needed to acquire excellent centers in our core markets,” Ronald Haft, chairman of Combined Properties, said in a release issued by his company.
“We look forward to bringing together Combined’s knowledge and expertise in retail real estate with Saban Capital Group’s financial horsepower and sophisticated investment prowess,” Scott Kend, senior director, development and acquisitions, told Commercial Property Executive.
Kend said part of the value-add play for Combined Properties will be leasing up the vacancies at The Terraces.
“The other part will be reconfiguring some of the signage and circulation in the center,” he said. “We are already having conversations with several tenants that we think will breathe new life and energy into the center.”