REAL ESTATE NEWS

The stability that retail has brought to the CRE landscape has helped counterbalance much of the disruption in other asset classes, such as office, according to Adam Siegel, vice president of product growth at Crexi.

He told GlobeSt.com that with construction prices skyrocketing post-COVID and vacancy rates declining, this has helped push rents higher in the Los Angeles market.

?We don?t see demand waning anytime soon, as reflected in strong cap rates for well-located, best-in-class assets, whether that be STNLs, strip centers, or grocery-anchored properties,? Siegel said.

That's highlighted by West Hive Capital's completed sale this week of Western Plaza, a 28,190-square-foot neighborhood retail center in Rancho Palos Verdes, California, for $24.5 million.

The Irvine-based real estate investment firm, founded and led by Kyle Gorman and Brandon Lehman, acquired the underperforming property in 2024 for $8.4 million.

West Hive was represented by Jeff Lefko of Hanley Investment Group. Sheila Alimadadian of Marcus & Millichap represented the buyer, Aria Investments.

?What we found most attractive about Western Plaza was that it was one of the last commercial retail centers in Rancho Palos Verdes, CA that had not gone through any renovations,? Lehman told GlobeSt.com.

?Pair that with great demographics, significant tenant interest, and a city that was excited to see investment on that side of town, and we could see the potential in the property before we even put a formal plan together.?

Located at 29105?29229 S. Western Avenue at the intersection of Western Avenue and Trudie Drive, the 1950s-era center underwent a full-scale redevelopment and repositioning under West Hive Capital?s ownership.

This included modernizing the exterior fa?ade, upgrading building systems and improving the site and parking, including the addition of a 4,000-square-foot outdoor dining plaza designed to support the center?s food and beverage tenants. The upgrades resulted in a fully stabilized asset at the time of sale.

The firm also re-merchandised the tenant mix to better align with daily needs and service-oriented retail demand in the surrounding community, according to a release.

New tenants secured during the repositioning include Alibaba Mediterranean of Pure Bean Coffee, The Habit Burger Grill, O?Reilly Auto Parts, Urbane Caf?, Mattress Firm, Pacific Dental, Piccini Italian and Koi Ramen, a locally owned restaurant concept.

?We see demand remaining strong but always have a watchful eye on things that could disrupt the market, including legislative issues at both the state and local levels,? Siegel said.

Source: GlobeSt/ALM