The partnership purchased the property in September 2008, right before the financial crisis, for $40.5 million. It was seeking a 1031 exchange, which allows a seller to defer capital gains taxes if sale proceeds are rolled into another property of equal or lesser value, and was happy to find a buyer that would allow it 90 days to identify another property, Warner said.

CBRE’s Kim Hourihan, portfolio manager for the fund that purchased the property, said her group looks for grocery-anchored shopping centers in the greater L.A. area and liked the Gateway Burbank’s proximity to the freeway. The fund plans to hold on to the shopping center for a long time, and the tenants, which have long-term leases, will remain the same.

Warner said the sale was the largest for a grocery-anchored shopping center in Los Angeles in the past eight years.

“Sellers are looking at the market and realizing there is such a lack of supply of this product type and that now is the time to sell,” he said. “The market is at a pricing level that’s hotter than the last boom in 2006 and 2007. It hasn’t been this attractive in history.”

Place to Park

Boeckmann Family Trust, a trust connected to the family that owns the 10 Galpin auto dealerships in the region, has purchased a 74,072-square-foot, two-story Class B warehouse on a 5-acre lot in San Fernando. The reason: Its Galpin Honda needed extra space to park cars.

The trust purchased the property, at 13880 Del Sur St., for $7.1 million, or roughly $32 a square foot for the land, from a group of investors led by Walter Mosher, who built the building for his business, Precision Dynamics Corp.

Mosher sold the company several years ago and no longer needed the property, said Greg Geraci, a senior vice president at CBRE who represented Mosher in the sale along with David Harding, Billy Walk and Matt Dierckman.

Alan Scobin, a lawyer who counseled the Boeckmanns in the sale, said Galpin Honda would lease the site from the trust.

Scobin said Galpin will complete tenant improvements to the building, but didn’t say whether the company will use it or enter into a sublease.

Gian Starita, a vice president at Colliers International, represented the trust with Brenton C. Weirick in the transaction.

Staff reporter Hannah Miet can be reached at hmiet@labusinessjournal.com or at (323) 549-5225, ext. 228.

For reprint and licensing requests for this article, CLICK HERE.

Next