TTM Real Estate Pays $80M for LA Retail Asset

HHLA shopping center. Image courtesy of TTM Real Estate Capital

TTM Real Estate Capital, a subsidiary of Cannon Commercial, has acquired a 248,841-square-foot retail center in Los Angeles. The local investor paid $80 million for the asset, according to The Real Deal.

Newmark and JLL brokered the transaction. The property previously traded in 2015, when a joint venture between Laurus Corp. and Torchlight Investors LLC picked it up for $111 million.

Originally completed in 2001 as The Promenade at Howard Hughes Center, the shopping center underwent a $35 million renovation program implemented by the previous ownership, subsequently being rebranded as HHLA. The refurbishment involved updating the exterior, adding new landscaping, creating outdoor spaces with a fire pit and relaxed seating area, as well as improving the layout to make it more pedestrian-friendly.

Situated at 6081 Center Drive between Howard Hughes Parkway and Sepulveda Boulevard in Westchester, the project is adjacent to the 405 Freeway. HHLA is attracting visitors from the Playa District in the South Bay, as well as from West Los Angeles and the surrounding areas. Los Angeles International Airport is less than 3 miles from the retail center.

New experiential tenants lined up

HHLA shopping center. Image courtesy of TTM Real Estate Capital

HHLA accommodates a variety of tenants, including Ben & Jerry’s, Buffalo Wild Wings, CineMark 18 & Xs, Color Me Mine, Dave & Buster’s, European Wax Center, Islands Fine Burgers & Drinks, Kabuki Japanese Restaurant, Mrs. Fields, Oakberry, Starbucks, The Hummus Factory, Tilt and Bella Luxe Loft.

Later this year, the property will add two new tenants to its roster. The shopping center will host an escape room entertainment company, 60out Escape Rooms, while Genio Global Entertainment and Muhammad Ali Enterprises are gearing up to launch the Muhammed Ali Experience at HHLA this spring.

The retail market is bouncing back

During 2022, experiential tenants such as theaters, fitness centers and entertainment venues experienced significant increases in foot traffic, as reported in a retail outlook by JLL. Single-asset and portfolio retail transactions exceeded $70 billion across some 4,700 deals during 2022, marking a 7 percent increase year-over-year, the same report shows.

Since the start of the year, several investors closed deals in the Los Angeles metro. The 85,022-square-foot, Aldi-anchored Griffin Plaza and the 157,322-square-foot Poinsettia Plaza changed hands in the beginning of February.

Gerrity Group is one of the companies that was active in the area during the first months of 2023. The company picked up the 136,580-square-foot Victory Plaza in North Hollywood, Calif., and sold the 91,846-square-foot Buena Vista Marketplace in Duarte, Calif.