Billionaire developer Rick Caruso announced Tuesday that his real estate company, Caruso Affiliated, has completed the purchase of a portfolio of retail properties in Pacific Palisades along Swarthmore Avenue.

The 2.8-acre portfolio, estimated by some to be worth between $40 million and $50 million, includes nearly all of the storefronts lining Swarthmore Avenue between Sunset Boulevard and Monument Street, some nearby properties on Sunset and a one-acre parking lot south of Swarthmore that has been zoned for multifamily use.

Caruso also announced that he is under contract to buy a Mobil gas station on the corner of Sunset and Swarthmore, which is not expect to close until mid-2016.

The sale of the Swarthmore Avenue properties took nearly two years to complete. Caruso first agreed to buy the portfolio in December 2012, but a discovery of toxic materials in the soil released over 30 years by a dry cleaning business there slowed the sale. The developer worked with the state to come up with an approved plan for clean up before closing escrow.

Caruso expects to begin the clean up immediately, a process he said will initially take about six months and can begin after demolishing select buildings.

“We’re very pleased to have finalized the clean-up plan for the property, which allows us not only to take ownership but to decisively move forward with the clean-up process which will be a benefit for the entire neighborhood,” Caruso said in a statement. “We are excited to move full-speed ahead with our plans for the next chapter of Swarthmore Avenue.”

Caruso will host a community meeting next week at Palisades Charter High School to share more detailed plans for the properties.

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