Thursday, May 29, 2014

Marcus & Millichap Arranges $16.9 Million Sale of Two Retail Condominium Shopping Centers in Southern California



Janette Monfared
PLAYA VISTA, CA, May 29, 2014 – Marcus & Millichap (NYSE: MMI), a leading commercial real estate investment services firm with offices throughout the United States and Canada, today announced the sale of The Shops at Concert Park, a portfolio of two 100-percent-leased retail condominium shopping centers in Playa Vista, a master-planned community in the Westside region of Los Angeles.

The centers are the 11,828-square-foot Pacific Promenade and the 10,907-square-foot Seabluff Drive. The total sales price for the two centers is $16,900,000, which equates to $743 per square foot.

            Brandon Michaels, a vice president investments, and Janette Monfared, an associate, both in Marcus & Millichap’s Encino office, represented the seller, an affiliate of Brookfield Residential. 

The buyer is a foreign investor. Sharone Sabar, a vice president capital markets in MMCC’s Encino office, arranged $10,815 000 in CMBS financing.

Sharone Sabar
              “Playa Vista is a trophy asset and the first new community to be built on the west side of Los Angeles in 50 years,” says Michaels.

            “All leases are triple-net, with a majority of them having solid term remaining,” adds Monfared. “Most of the tenants have occupied the center since its construction in 2005.”

            Both shopping centers are situated on the ground floors of mixed-use developments with 179 condominiums above each one. The Pacific Promenade shopping center is located at 13020 Pacific

Promenade in Playa Vista, Calif. and is home to national tenants Bank of America, Coffee Bean and Race Telecommunications.

 Local tenants include Piknic, Sweet Fish Sushi Bar, Yoga Vista and Hollyway Cleaners.

            “The buyer obtained nonrecourse CMBS debt at 65 percent loan to value,” says Sabar. “The 10-year interest rate is fixed at 4.9 percent. The complexity of the offering presented some financing challenges, all of which MMCC overcame.”

Brandon Michaels
            Located on the corner of Seabluff Drive and Runway Drive in Playa Vista, the Seabluff Drive shopping center features a mix of retailers that includes Playa Vista Medical Center, Playa Pilates, Coldwell Banker, McClintock Dental Group, Pinkberry and Yummy.com Fresh Market.

Many of the tenants’ leases expire in 2018 and all tenants have an excellent operating history at this location. Most of the retailers have been at the center since its construction in 2007.

            “The Marcus & Millichap platform is unique in its ability to source hard-to-find buyers, maximize value for sellers and secure the most competitive financing,” says Bill Rose, national director of the firm’s National Retail Group.


For a complete copy of the company’s news release, please contact:

Gina Relva
Public Relations Manager
(925) 953-1716


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