Retail Center Trades for Record Price

BURBANK, CA—Gateway at Burbank has sold for the highest price paid for a class-A retail center in the greater Los Angeles area since 2007. In an earlier story, GlobeSt.com reported that a fund managed by CBRE Global Investors purchased the property for an undisclosed price. Although neither party has disclosed the purchase price, GlobeSt.com has learned from industry sources unrelated to the transaction that the property traded hands for $49.6 million. The sellers name has not been disclosed.

“There is a huge lack of supply in class-A grocery-anchored shopping centers in Southern California and the seller realized that due to current market conditions, it was time to capitalize on the pent up demand,” El Warner, associate VP at Colliers International, tells GlobeSt.com. “Pricing for this asset class and an investors risk tolerance significantly exceeds even the inflated boom from 2005-2008.  This sale represents exactly that as the seller acquired the property at the tail end of the last economic boom at a 30% discount to today’s pricing. The fact that this product class can trade at pricing 30% above the last economic boom is both astounding and frightening and is a reflection of not only the pent up demand but the historically cheap cost of capital.” Warner represented the seller in the transaction, along with Colliers International EVPs Tom Lagos and Jereme Snyder.