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Saturday, Sep 23, 2023

Calabasas Shopping Center Goes for Full Price

Courtyard at the Commons shopping center in Calabasas has sold in an all-cash deal worth $50 million. The property was on the market just 60 days, and went for top dollar due to its high lease rates and proximity to another attractive shopping center, say brokers involved in the deal. Located between the Ventura (101) Freeway and Calabasas Road, the center comprises four buildings. It is anchored by a 31,000-square-foot building constructed in 1980 that is home to a Babies ‘R’ Us and a 50,374-square-foot main building, constructed in 1981 that is home to 20 tenants, including a Coffee Bean & Tea Leaf, Baja Fresh and clothing boutique Blush. There are two smaller free-standing buildings on the property added in 1989. One is home to a Wells Fargo bank branch, the other a Chase Bank branch. Chicago asset management firm RREEF America LLC was the buyer, according to CoStar Group Inc. The property was marketed by CBRE Global Investors for an undisclosed public employee pension fund. Dan Riley, a senior vice president at CBRE’s El Segundo office, noted that the high average household income in Calabasas – more than $175,000 – made the property attractive to investors. “This property has a historically high lease rate, and there is a high barrier to entry in Calabasas for new developments,” he said. “So that makes this very attractive.” The property is 97 percent occupied, and recent leases have gone for up to $4.25 a square foot on a monthly basis, higher than most retail centers in the Valley area. The center is also across the street from Commons at Calabasas, a luxury shopping center owned by developer Rick Caruso’s Caruso Affiliated. Sam Alison, Ben Cherney, Todd Goodman, Gleb Lvovich, Prestow Fetrow and Kirk Brummer of CBRE also represented the seller. RREEF America represented itself. Tenant Pick-Up Northridge Business Parks is adding to its tenant roster with two new leases. Regal Medical Group Inc., a doctor’s group headquartered at the office park, occupies two offices in separate buildings and has signed a 12-year extension. It plans to consolidate and expand operations, moving into a 96,000-square-foot office space at 8550 Balboa Blvd. larger than its current spaces combined. The four-building office park, which started construction in 1976, also has signed on Child and Family Guidance Clinic, a non-profit that provides child mental health counseling and family services. The organization took 34,000 square feet for 10 years and will consolidate several Valley-area offices there. In January, Child and Family Guidance signed a lease on a new space for its Palmdale location as well. Financial terms of the leases were not disclosed, but the average rate for the park is about $25 a square foot on an annual basis, according to CoStar. Ron Wade, a senior vice president at CBRE Inc.’s Universal City office who was involved in both deals, said the leases are a sign the office market is continuing to improve. “I believe this reflects a larger trend within the region: the market for high quality, Class A space is tightening,” he said in a statement. Wade represented Regal in its deal and landlord Northridge Business Center LLC in the Guidance deal. Gil Canton, also with CBRE’s Universal City office, represented the landlord in both deals. Texas Bound Agoura Hills affordable housing developer AMCAL Multi-Housing Inc. is expanding into Texas. The firm specializes in apartment buildings, subsidized by low-income housing tax credits, and has built more than 45 complexes in California, including Montecito Terraces in Panorama City and Casablanca Apartments in Palmdale. Now, with new tax credits and funding from a local municipality in Texas, AMCAL is set to break ground this spring on its first out-of-state project. First up for the company is AT Villages at Cypress, just outside of Houston. The 162-unit senior housing project fits the AMCAL model, with the majority of the units offered to low-income residents. Chief Executive Percival Vaz said in a statement that the firm will continue to focus on affordable housing projects. Staff reporter Kelly Goff can be reached at (818) 316-3135 or kgoff@sfvbj.com.

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