Kennedy Wilson Sells LA Retail Asset for $58M

Victory Plaza. Image courtesy of Newmark

Gerrity Group has acquired Victory Plaza, a 136,580-square-foot, grocery-anchored shopping center in North Hollywood, Calif. Newmark brokered the $57.8 million transaction on behalf of the seller, Kennedy Wilson.

According to CommercialEdge, the asset last traded in 2014 for $30 million. The same data provider reveals that the property is currently subject to a $27 million Wells Fargo Bank loan, set to mature in 2029.

Victory Plaza was completed in 1978 on 12.21 acres and is anchored by Vallarta Supermarkets. Other tenants at the 97 percent leased property include CVS, LA Fitness, Petco, US Renal Care, Citibank, Blaze Pizza and Chipotle, the tenant roster at the retail center averaging more than 18 years of tenure.

READ ALSO: How CRE Boosts the Economy

Located at 13007-13047 Victory Blvd., the shopping center sits in a bustling intersection in the heart of the San Fernando Valley. With 350,000 inhabitants living within a 3-mile radius, the property benefits from a daily traffic averaging 211,000 vehicles along the Hollywood Freeway. The retail center is also accessible from Victory Boulevard.

The seller was represented by Newmark Vice Chairman Pete Bethea, along with Senior Managing Directors Rob Ippolito and Glenn Rudy.

Growing investor interest in grocery-anchored assets

Despite the ongoing changes in the capital markets landscape, there continues to be a strong investor interest in grocery-anchored shopping centers. Earlier this month, Milan Capital Management purchased El Dorado Shopping Center, a 74,500-square-foot retail center in Long Beach, Calif., anchored by supermarket Grocery Outlet.

Cushman & Wakefield‘s latest market report reveals that the retail sector saw growth in the fourth quarter of 2022, leading to a historic low in vacancy for shopping centers. The rate decreased by 20 basis points to 5.7 percent, while net absorption increased to 10.9 million square feet, as of the same time frame.

According to the same source, in Los Angeles, a net absorption totaling 72,978 square feet was registered, while vacancy stood at 5.7 percent at the end of last year’s fourth quarter.

Meeting consumer demand remains a key priority for retailers, which must adapt to shifts in consumer behavior, economic uncertainties and persistent supply chain challenges. While there is hope for improvement this year, the supply-demand imbalance is likely to continue.