Marcus & Millichap Arranges Sale of Two Playa Vista Retail Properties for $16.9 Million
- May 31, 2014
Marcus & Millichap’s Encino office recently arranged the sale of a two-property retail portfolio for a total of approximately $16.9 million. The two shopping spots are located in the L.A. submarket of Playa Vista. The acquisition was arranged by Marcus & Millichap Vice President investments, Brandon Michaels, and Janette Monfared, an associate with the Encino office. The seller is an affiliate of Brookfield Residential.
The two retail properties, Pacific Promenade and Seabluff Drive, are located at the ground floors of mixed-use projects in Playa Vista, at 13020 Pacific Promenade and the corner of Seabluff Dr. and Runaway Dr. respectively. According to rentv.com, the acquisition was made possible through the obtaining of nonrecourse CMBS debt at 65 percent loan to value. Arranged by MMCC’s Encino office, the financing totaled approximately $10.8 million.
Pacific Promenade is an 11,800 square-foot retail property, home to tenants such as Coffee Bean, Bank of America, Yoga Vista, Sweet Fish Sushi Bar and Hollyway Cleaners. The 2005-built property is located on the ground floor of a mixed-use community that also includes 179 condo units.
Seabluff Drive is a 10,900 square-foot retail center that was developed in 2007, as part of another mixed-use community, also featuring 179 condominiums on the upper floors. The property’s retail tenant roster features names such as Coldwell Banker, Playa Pilates, Yummy.com Fresh Market and Pinkberry.
The properties have an occupancy rate of 100 percent and were fully leased at the time of the transaction. Part of an already well-performing area of Los Angeles where the average vacancy rate stands at around 4.5 percent, the assets are overachieving. According to data provided by Marcus & Millichap Real Estate Investment Services, the Westside Cities area ranks fourth in terms of vacancy rates, trailing only the Tri-Cities, the Mid-Wilshire area and South Bay/Long Beach.
Image courtesy of Google Maps.
Table courtesy of Marcus & Millichap Real Estate Investment Services at marcusmillichap.com