Sherman Oaks-based Mushmel Properties has purchased a $20.9 million Ralphs-anchored, retail component of Market Lofts, a condominium development in downtown.
Hanley Investment Group Real Estate Advisors’ Lee Csenar and SRS Real Estate Partners’ Carlos Lopez represented the seller, MDC Realty Advisors, in the transaction, as well as the buyer.
“We generated multiple qualified offers from 1031 exchange investors, private family offices and institutional investors, ultimately selecting a private, all-cash buyer with whom we had previously transacted,” Csenar said in a statement. “The buyer agreed to a 15-day due diligence period, giving the seller strong confidence in closing.”
Limited competition in the area
The property, at 645 W. Ninth St., was built in 2007. It was developed by Lee Homes and CIM Group and designed by KTGY. It has a total of 267 units above retail and an underground parking garage.
Ralphs at Market Lofts was the first grocery store to open downtown since the 1950s.The site has six other tenants as well, including Honeymee and Momi Sushi.
There is, according to a release, “limited grocer competition” in the nearby area.
“Ralphs has achieved high sales volumes at Market Lofts as the dominant grocer in downtown Los Angeles,” Lopez said in a statement. “The project’s full occupancy and grocery-anchored tenancy, along with its long-term income stability, offer a secure investment opportunity in the heart of downtown Los Angeles.”
“Ralphs at Market Lofts represented a rare opportunity to acquire a fully leased asset anchored by a dominant grocer in the heart of one of the most dynamic urban centers in the country,” Csenar added.
