Terramar, Studley Sell 618 KSF Shopping Center in Santa Clarita, Calif.
- Feb 24, 2014
Six years after completing the development of the Plaza at Golden Valley, a regional shopping center in Santa Clarita, Calif., Terramar Retail Centers L.L.C. has sold the 618,000-square-foot, suburban Los Angeles asset through its subsidiary, GMS Golden Valley Ranch L.L.C. With the assistance of commercial real estate services firm Studley, Terramar found a new owner in MGP XI REIT L.L.C., an affiliate of Merlone Geier Partners.
The property, which constitutes the retail segment of the Golden Valley Ranch development, is presently home to the usual–and highly coveted–retail suspects. Target is among the anchors, as are Lowes, Kohl’s, Bed Bath & Beyond, Staples, and PetSmart.
Class A retail assets surrounding Los Angeles have an inherent appeal. Relying on that knowledge, Studley presented the Plaza to a pool of only five investors.
“What attracted the buyers to the property was the strong national credit tenancy, relatively newer improvements, and upside in the vacancy and growth potential in the immediate trade area,” Kyle Miller, corporate managing director with Studley, told Commercial Property Executive. “Disney just recently got approvals for a huge development on land they’ve owned for decades, which will benefit this center.”
Last summer, the County of Los Angeles greenlighted plans for the 58-acre The Disney | ABC Studios at The Ranch at the nearby Golden Oak Ranch.
The potential is there. The Los Angeles County retail market is strong and Santa Clarita Valley is no exception. The submarket reported a vacancy rate of 6.3 percent in the fourth quarter of 2013, according to a report by Voit Real Estate Services.
And the Plaza was made all the more desirable due to the fact that there’s a dearth of high-quality retail product available for sale in the area. It was the perfect storm for buyer and seller alike.