The Greater Los Angeles’ retail market is seeing an increase in activity, with several properties trading hands in recent months. In one sale, a 19,127 square-foot retail center leased to CVS was sold for $11.95 million, or approximately $624 per square foot, a closing announcement from Faris Lee Investments showed. According to property records, the seller was Topaz-Duarte LLC, an entity which also shares an address with Karl Niknejad. The deal was sold to an undisclosed local buyer.
Located at 2307 Huntington Drive, 16,497 square feet of the property is occupied by CVS. The rest of the nearly 3,000 square feet is occupied by Children’s First Pediatric Group and Bank of America.
According to the closing announcement, the tenants have occupied the location for more than ten years, with CVS recently extending its lease an additional five years. At the time of the closing, the property offered an annual cap rate of 4.67 percent.
The property is located directly off of the interchange of Interstate 605 and 210, which sees approximately 231,000 vehicles per day, according to the closing announcement. The retail center is also in close proximity to a variety of other retail assets, including Walmart, Costco and Target.
Overall, the retail sector in the Greater Los Angeles area is making a comeback after the disruption of the COVID-19 pandemic. According to a third quarter retail market report from Colliers International, vacancy has remained relatively low, dropping to 6.4 percent in the third quarter of the year. For strip centers, vacancy rates were even lower at 5.3 percent, with average asking rental rates at $2.52 per square foot. Rental rates across the region averaged $2.21 per square foot.