COMPTON, CA—Invesco Real Estate has purchased the second phase of the Gateway Towne Centre from Prism, the developer who built the property. The purchase price and transaction terms were not disclosed, however, sources unrelated to the deal say the purchase price was approximately $27 million. The sale of the property drew high interest from local and institutional buyers, garnering multiple offers.

“It is not very often that you'll have something on the market with this many credit tenants,” Michelle Schierberl, an SVP at Colliers International, tells GlobeSt.com. “Usually, there would be a lot more mom-and-pops, but this was national and regional players. Some of the players were concerned about the Compton market because of the historical issues, but the prospective buyers were really shocked when they got to the property and saw that the center is as nice as anything you would see in Irvine,” Schierberl represented the seller in the transaction along with Colliers International SVP Donald Ellis.

The 82,000-square-foot second phase of the property is 100% leased to a tenant mix that includes Marshall's, PetSmart, ULTA Cosmetics, Anna's Linens, Dollar Tree, El Pollo Loco, Starbucks and Chipotle. Although the property is located in the Compton market, buyers were attracted to the area's strong and dense demographics of 3 million people in a 10-mile radius. “When you look at the sales revenues of the stores in Compton, they're much higher because there is a much higher density of people. Although they don't have an income of $100,000, there are so many of them that you get a higher number in sales,” says Schierberl, who adds that it was very difficult to assemble the land to build the property, and therefore, it is insulted from additional competition. This was another reason the sale was so popular.

While the sale drew strong interest and multiple offers, the brokerage team and the buyer were looking for something specific. “We wanted a buyer that we knew had the money to close and somebody who would take first-class shape and care of the property,” she says. “For us, it was finding people who understand why they should buy an urban core asset, and both the private buyers and institutional understood that.” They landed on Invesco Real Estate, who met all of their qualifications for the sale, and plans to buy the first phase of the property when Prism is ready to sell in the near future. The first phase is 98% occupied and has a tenant mix that includes Target, Home Depot, Staples, Best Buy, 24-hour Fitness, Bank of America, TGI Fridays and Panda Express.

It's not only retail investors who are looking to take advantage of the slightly better yields in the Compton market. Last year, an industrial buyer had to secure a lease-to-buy agreement to penetrate the tight industrial market in Compton.