Equity One Spends $115M for California Shopping Center
- Nov 18, 2011
November 17, 2011
By Barbra Murray, Contributing Editor
Culver Center, a 216,600-square-foot community shopping center Los Angeles County’s Culver City, has come under new ownership. Equity One Inc. snapped up the grocery-anchored asset for $115 million.
Occupying nearly 10 acres at Overland Ave. and Washington, Blvd., in an area with high barriers to entry, the 99 percent-leased Culver Center is home to Ralph’s, Best Buy, Bally Total Fitness and a host of popular eateries. A full tenant roster always attracts investors’ attention, but a great location is also a magnet and Culver Center sits in a star-studded setting, so to speak. Its neighbor just across the street is Sony Picture Studios, and not far away is the office property that where NFL Enterprises broadcasts its NFL Network from sound stages in the building.
“Culver Center is a unique property which meets all of our acquisition criteria: major metropolitan market, severe supply constraints, strong tenant sales, below market rents, near term NOI growth, and opportunities for future redevelopment,” Jeff Olson, CEO of Equity One, said.
The latest addition to Equity One’s portfolio is the type of property that’s hard to come by in Los Angeles, as indicated by its $530 per square-foot price tag. The average sales price for community/neighborhood shopping centers in Los Angeles County was $265 per square-foot in the third quarter, according to a report by commercial real estate services firm Colliers International. In addition to its location, the property’s infinitesimal amount of space available for lease is nothing to sneeze at either compared to the 7.2 percent total vacancy rate for this property type in the area.