Lennar Homes has purchased a retail shopping center in Arcadia which will be redeveloped as a mixed-use project.

Lennar Homes has purchased a retail shopping center in Arcadia which will be redeveloped as a mixed-use project.

Lennar Homes has purchased a shopping center in Arcadia from the Olson Company.

It was purchased for $36.6 million, which includes an approved tract map, improvement plans and architectural construction drawings.

The new mixed-use project will have 12 two-story detached condos, 44 three-story attached townhomes, 21 two-story attached townhomes and three three-story live/work attached townhomes. There will also be some space zoned for retail development.

The Hoffman Company’s Justin Esayian represented the buyer and the seller in the transaction.

“This transaction represents a rare opportunity to achieve early 2020 deliveries in a highly desirable infill location in the supply-constrained San Gabriel Valley, where listing prices have increased 14 percent year over year,” Esayian said in a statement. “Transactions of this size are extremely rare in this location, and we predict this community will be particularly successful as there is very little new product available to compete with it.”

Aaron Hirschi, senior vice president of land acquisition for Olson Homes, said the retail property was underperforming. The new plan, he said would “right size” retail options and provide necessary housing.

The main entrance to the gated community will be at corner of Las Tunas Drive and Live Oak Avenue, off Santa Anita Avenue.

Commercial real estate reporter Hannah Madans can be reached at hmadans@labusinessjournal.com. Follow her on Twitter @HannahMadans

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