Paragon Closes First Sale From Canyon Fund

Erwin Bucy is a principal at Paragon Commercial Group.

LOS ANGELES— Paragon Commercial Group has closed its first disposition from its joint venture with Canyon Partners Real Estate under the Canyon Catalyst Fund , an emerging manager program. The joint venture sold the Hawthorne Plaza shopping center for $43 million after buying the property in early last year and executing an improvement plan. “We were able to reposition the property with the new anchor tenants as well as lease up the vacant shop space so that the center was 100% leased, which made this an excellent asset for a core buyer,” Erwin Bucy , a principal at Paragon Commercial Group tells GlobeSt.com. The shopping center is a four-building, 97,719-square-foot complex anchored by a Superior Grocers and occupied by 10 other tenants including AT&T, Starbucks and Subway. It is 100% occupied, and as a result, saw tremendous competition from buyers. “There was very significant competition for the asset as there are not very many infill grocery-anchored centers available in today’s market. Bidders included institutional buyers as well as high net worth individuals,” says Bucy. “High quality assets like this in strong retail trade areas such as this are rare, so the interest level was very high.” Paragon declined to comment on the investor returns from this disposition or on its plans for the proceeds from the sale. CJ Osbrink , Bryan Ley and John Crump of HFF and Geoff Tranchina of JLL represented the sellers in the transaction.