In the first quarter of 2022, Los Angeles’ retail market finished strong, with recent transactions continuing to highlight positive growth in the sector. In one such transaction, Modiv, a Newport Beach-based investment trust acquired a 72,000 square-foot KIA dealership in Carson in a sale-leaseback transaction. According to a first quarter Los Angeles retail market report from Kidder Mathews, the property was purchased for $69.27 million, or about $962 per square foot.
Located at 22020 Recreation Road, the property is occupied by Trophy Automotive Dealer Group. The automotive group represents multiple automobile brands and currently runs the site as a KIA dealership. At the time of the sale, Trophy Automotive Dealer Group signed a 25-year lease at the property.
According to Modiv’s website, the KIA dealership is the largest in the United States by sales volume and also includes a service garage and rooftop parking. There is also a billboard located on the property, which provides an added source of revenue.
The property is located just South of Los Angeles and immediately adjacent to Interstate 405. The dealership also neighbors several similar properties, such as Carson Toyota, Carson Honda and Auto Dealer of Carson.
The dealership is not Modiv’s first acquisition in Southern California. The company currently owns several office and retail assets throughout the Greater Los Angeles area and San Diego. According to its website, Modiv has $151M of acquisitions recently closed and/or under contract to close. The company has also created a $500 million real estate fund comprising 2.3 million square feet commercial real estate.
