Over the past year, retail assets throughout the Greater Los Angeles area have been drawing a significant amount of interest from investors. However, some remain on the market, waiting to be traded. One such property in Santa Clarita is the Tesoro Village, a 74,415 square foot shopping center in Valencia. According to a property listing by Kidder Mathews, the property is being offered at $50 million, or about $671 per square foot.
Located at 23892 Copper Hill Dr., the property last traded hands in 2016, when it was acquired by an entity affiliated with Thousand Oaks-based investment company DSB Properties Inc.
Tesoro Village is anchored by grocery chain Albertsons, with other tenants including Bank of America, Smile City Dental, UPS Store, Great Clips, Sam’s Flaming Grill, Jersey Mike Subs and several others.
The property is located within the Santa Clarita community, and is one of the main shopping hubs with several housing developments in the immediate surroundings. Currently, there are more than 155,000 people within a five-mile radius of the property with average household incomes of $144,000 per year.
During the third quarter of the year, the Greater Los Angeles area has seen a significant number of retail sales. In one of the largest of the quarter, Unibail-Rodamco-Westfield sold its Westfield Santa Anita in Arcadia. The 1.48 million square foot shopping center sold for $537.5 million, or about $611 per square foot, according to an announcement from the company in August.
Overall, the Los Angeles area retail market continues to perform fairly well, according to a third quarter market report from Kidder Mathews. That report showed vacancy rates have remained largely unchanged year-over-year from 4.9 percent in the third quarter of 2021 to 4.7 percent in 2022. At the same time, average rental rates have gone up just slightly year-over-year from $2.79 per square foot to $2.92 per square foot.