SRS Real Estate Partners announced it has completed the $13.5 million sale of a two-tenant, 58,652-square-foot (sf) retail property occupied by Smart & Final and Barnes & Noble located at 39112 to 39228, 10th Street West in Palmdale, California (Los Angeles County). Both tenants have approximately 10 years remaining on their triple-net, corporate-guaranteed leases.
SRS Capital Markets Senior Managing Principals Matthew Mousavi and Patrick Luther represented the seller, a family office operating retail centers across the country. The buyer was a Southern California-based private investor.
Built in 1999 and situated on 4.1 acres, the property is within Palmdale Marketplace, a 214,000-sf power center with tenants including Target, Lowe’s Home Improvement, and Sprouts, among others. The property is situated at the intersection of 10th Street and Technology Drive and is near the on/off ramp of State Highway 138 and 14.
“This asset is the final sale in a six-property, $32 million break-up strategy within Palmdale Marketplace that we have executed on behalf of the ownership over the past three years,” said Mousavi in a statement. “We have successfully created significant additional value for our client by breaking up the asset and selling to private investors at more favorable price points than if we were to transact with a single buyer, ultimately maximizing returns for the seller.”
“This final sale involved the two-tenant portion of the property that included Barnes & Noble and Smart & Final. Due to the offering being grocery anchored under newly extended leases, we received multiple offers from private and institutional profiles, ultimately selecting a local high net worth investor,” added Luther.
The previously sold properties within Palmdale Marketplace include Shops at Marketplace, Vitamin Shoppe, 5 Guys and Café Rio, Jamba Juice, and IHOP along with other pads. The average cap rate was 5.57%.
Last year, SRS Capital Markets completed more than $3.5 billion in deal volume comprised of 950 transactions across the nation. SRS currently has in excess of 845 properties actively on the market with a market value surpassing $3.7 billion.
