LANCASTER, Calif. – Hanley Investment Group Real Estate Advisors, a nationally-recognized real estate brokerage and advisory firm specializing in retail property sales, announced today the sale of Lancaster Triangle, a 35,569-square-foot multi-tenant shopping center in Lancaster, California. The purchase price was $5.75 million, which represented one of the lowest recorded closing cap rates for a multi-tenant center in the Antelope Valley built before 2005.
The buyer was a private investor based in North Hollywood, California. The seller, Lancaster Triangle, LLC, was based in Calabasas, California. Both parties were represented by Executive Vice President Bill Asher and Associate Jeff Lefko of Hanley Investment Group in Corona del Mar, California, along with Rosanne Morgiewicz of The Morgiewicz Company of Malibu, California.
Built in 1980 on 3.40 acres, Lancaster Triangle is located at 1525 W. Avenue K and 43627-43729 15th Street West, at the signalized intersection of Avenue K and 15th Street West in northern Los Angeles County. The shopping center, which was 100 percent occupied at the time of the sale, includes Burger King, Fast Auto & Payday Loans and American Tire Depot. Other tenants include York Shore House Fish & Chips, Mila’s Kusina Filipino Restaurant, Sugary Donuts, Socorro’s Bridal, Thai & Chinese Food II Restaurant, Remy’s Oriental Market and T-Mart.
The multi-tenant shopping center is located adjacent to the 14 Freeway on/off ramps, benefitting from 75,000 cars per day as well as more than 54,000 cars per day at the signalized intersection of Avenue K and 15th Street. More than 180,000 people reside within a five-mile radius of the center.
“Lancaster Triangle received a lot of interest due to the value-add opportunity and upside potential to remodel the center and increase below market rents in the future,” said Asher. “It also provided a low price per square foot investment with a secure and stable in-place income stream with low downside risk.”
Asher added, “We were able to negotiate a short due diligence period and a timely closing to satisfy the buyer’s and seller’s 1031 exchange requirements.”
“The premium pricing was also attributed to the property’s prime location in the heart of Lancaster at a heavily-trafficked, signalized intersection with signage visible from the adjacent 14 Freeway,” said Lefko. “The five retail buildings that make up the multi-tenant retail center were individually parcelized, which provided additional value for a future break-up disposition strategy.”
Lefko added, “The purchase of Lancaster Triangle is continued evidence of the high demand for well-located value-add retail properties in Southern California, a category in retail that has been supply constrained in recent years.”
About Hanley Investment Group
Hanley Investment Group Real Estate Advisors is a retail investment advisory firm with a more than $5 billion transaction track record nationwide, who works closely with individual investors, lending institutions, developers, and institutional property owners in every facet of the transaction to ensure that the highest value is achieved. For more information, visit www.hanleyinvestment.com.
Company Name: Hanley Investment Group Real Estate Advisors
Contact Person: Bill Asher, Executive Vice President
City: Corona del Mar
Country: United States