Northpark Village Square Sells for $58 Million
Demand Remains Strong Among Investment Funds
In another sign that demand for grocery-anchored shopping centers remains strong among institutional investors, a team of retail specialists from Colliers International, after receiving multiple competing offers, has negotiated the $58 million sale of Northpark Village Square, a dominant neighborhood shopping center in the Santa Clarita Valley community of Valencia in north Los Angeles County.
Totaling some 87,103 square feet and anchored by a Ralphs Market and a Rite Aid Drug Store, the strong-performing shopping center was acquired by Inland Retail Property Fund LP, a newly formed investment fund sponsored by Inland Institutional Capital Partners Corporation (ICAP), according to Colliers Senior Vice President Michelle Schierberl, who along with Senior Vice President Don Ellis and Executive Vice President Tom Lagos, represented the pension-fund seller in the transaction. Matthew Tice, Senior Vice President of Inland Real Estate Acquisitions Inc. advised ICAP.
“With both a high-performing Ralph’s grocery and a national chain drug store anchor in place, and with a dwindling supply of such dual-anchor centers available in Southern California, the center’s attractiveness to investors rose dramatically,” Schierberl said.
Located at the heavily-trafficked intersection of McBean Parkway and Decoro Road in Valencia, it is the dominant grocery/drug store-anchored center in the region with a roster of tenants that include, in addition to Ralphs and Rite Aid, a branch of Wells Fargo Bank, Starbucks, a Circle-K convenience store and a Mobil gas station.
“This is a seasoned and fully-leased neighborhood center with an income stream predominately generated by national credit tenants,” Ellis added. “It’s location in one of L.A. County’s affluent suburban communities where the average annual income is $123,000 within a mile of the center, only increased interest among investors.”