Colliers Reports High Price Sale in Santa Monica of Westside Retail Center
Center Sets Bellwether Pricing of $1,000 PSF
In a solid sign that the West Los Angeles retail market has fully rebounded from its recessionary doldrums, Colliers International recently represented California Credit Union in the financial institution’s $14.35 million sale of a much-sought after neighborhood shopping center, making it a bellwether for the west Los Angeles market with its price of more than $1,000 per square foot paid for a retail property outside of Beverly Hills and Santa Monica, company officials have reported.
Originally listed at $12.7 million, and with interest in the center growing, listing brokers Corey A. Waite and Hayden C. Eaves IV of Colliers’ downtown Los Angeles office, implemented a bidding process strategy to maximize that sale price. At the end of that process, some 20 qualified offers had been received in less than a week’s time.
Winning bidder was The Charles Company, a West Hollywood-based investment firm, whose all-cash offer established the new and higher pricing level for Westside properties outside of the Santa Monica and Beverly Hills submarkets. Bill Bauman of Studley represented the buyer.
“What this sale demonstrates on so many levels is that the Westside retail investment market is ground zero for investors who are willing to pay a premium for quality and well-located investments, in this case a premium of more than $2 million over the asking price,” said Waite. “The fact that we had 20 separate offers in less than a week underscores that fact.”
Located at the intersection of Westwood and Olympic boulevards, the center is anchored by two major national credit tenants, Starbucks and JP Morgan Chase Bank. It also features both surface and one-level of subterranean parking. Although California Credit Union is relocating its branch office it maintained at the center as part of a branch re-positioning strategy, the center is expected to remain fully occupied.
Earlier in 2014, Waite and Eaves represented the credit union in the acquisition of 10425-10431 Santa Monica Boulevard. This property will serve as the replacement property for the existing branch that is currently located at 2201 Westwood Boulevard. The Santa Monica Boulevard property is a highly desirable retail property located at the gateway to Century City. While Waite and Eaves, who are based in Colliers downtown Los Angeles offices, represented the credit union in the transaction, the property owner, a private investment firm, represented itself.
“This site is important to the credit union because it provides a highly desirable location with prominent signage on Santa Monica Boulevard as motorists drive to and from Century City which is located just a few blocks to the east of the property.” Waite said. “Along with its location adjacent to Century City and the Westside, it promises to be one of its busiest branch locations.”