As the Los Angeles retail market continues to recover from the effects of the COVID-19 pandemic, investors continue to take interest in the region. More recently, two retail transactions totaling nearly $30 million were reported by Kidder Mathews in a quarter three retail market report.
The first property is a supermarket located at 3900 E Ocean Boulevard in Long Beach, which sold for $15.15 million or approximately $795 per square foot. According to the report, the property was sold by Darling Family Trust and purchased by Safco Capital Corporation, a Los Angeles-based real estate investment firm with a focus on retail assets.
Totaling 19,064 square feet, Vons is the sole occupier of the Long Beach supermarket property. Vons is a wholly-owned subsidiary of Albertsons, one of the leading food and drug retailers in the U.S. Albertson’s operates more than 2,252 locations, and has a total revenue of $69 billion.
The second property is Seafood City Plaza, which is located at 17202-17298 Norwalk Boulevard in Cerritos. It was acquired by Balboa Retail Partners for $14.8 million, or approximately $283 per square foot. The seller was an entity associated with Margot F. Zaterman.
Seafood City Plaza is a 52,382 square foot retail center, with various tenants including Seafood City, Jollibee and Bank of America. Its buyer is also a Los Angeles-based retail investment firm. Since 2011, Balboa Retail Partners has acquired more than three million square feet of retail assets across 18 states.
The same report from Kidder Mathews showed the retail market in the Greater Los Angeles area continues to improve, with vacancy rates dropping slightly from 5.2 percent to five percent in the past quarter. At the same time, rental rates are continuing to increase. According to the report, rental rates averaged $2.80 in the third quarter of 2021, compared to $2.73 in the previous quarter. The third quarter also saw positive net absorption at just over 1.2 million square feet.