LOS ANGELES—A partnership between Canyon Catalyst Fund and Paragon Commercial Group have partnered together to purchase the Hawthorne Plaza, a 98,000-square-foot retail center on a high profile intersection in Hawthorne, CA. The property is anchored by a Superior Grocery, while the other tenants include Citibank, Taco Bell, AT&T and Starbucks.

"Hawthorne Plaza presented the unique opportunity to reposition an irreplaceable retail center with a necessity goods based anchor,"Erwin Bucy, a principal with Paragon Commercial Group, tells GlobeSt.com. "In today's market, it is extremely rare to be able to immediately create value through repositioning an anchor tenant at a such a “main and main” intersection. Hawthorne Plaza is also supported by extremely strong and diverse demographics in addition to city reinvestment along Hawthorne Blvd."

The partnership was attracted to the purchase both for its location on a high-traffic intersection at El Segundo Blvd and Hawthorne Blvd. The intersection sees about 80,000 cars drive through daily, while the surrounding are has a population of 300,000 people within a three-mile radius. Additionally, Superior Grocery stores is the sixth fast-growing grocery chain in the country and serves the diversity in the surrounding community. The combination of the tenancy and the location made this a prime retail purchase.

“CCF has assembled a diversified portfolio of assets in compelling markets throughout California; we seek properties and submarkets that would benefit from growth capital,” Maria Stamolis, senior managing director and head of asset management at Canyon Capital Realty Advisors, tells GlobeSt.com. “Hawthorne Plaza provides excellent exposure to urban retail through value add repositioning and stable cash flow. As an Emerging Manager, Paragon Commercial Group has shown an extraordinary ability to create value through tenant relationships and a block by block understanding of target markets. We look forward to continuing the partnership and growing their platform.”

This partnership isn't the only investor group interested in the Hawthorne market. Recently, a private investor purchased a triple-net leased McDonalds from Starpoint Commercial Properties and HRI Development at a historically low cap rate of 3.75%. Some of this growth is spurred by a $13 million improvement plan being executed by the City of Hawthorne along Hawthorne Boulevard, which has added new traffic signals, bike lanes and other infrastructure improvements.

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Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on GlobeSt.com and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.

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Los Angeles
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