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Friday, May 27, 2022

East Hollywood Retail Property Trades for $30 M

Hollywood Holdings has purchased the 42,916-square-foot Gershwin Lofts Retail @ Hollywood for $30.4 million.
The two-building property is fully occupied by Marshalls, Petco and Farmer Boys. It’s located at 5501-5521 Hollywood Blvd. and 1719-1723 N. Western Ave.

CBRE Group Inc.’s Patrick Wade and Alex Kozakov represented the seller in the transaction.
“The Gershwin Lofts Retail is a generational corner piece of real estate in East Hollywood,” Wade said in a statement. “It is rare to acquire a stabilized, urban center that offers strong in-place cash flow with long-term redevelopment potential.”

In the fourth quarter, the Hollywood/Silver Lake submarket had a vacancy rate of a mere 3.2% with an average asking lease rate of $3.34 a square foot, according to CBRE data. The area saw no net absorption.
The market reported stronger numbers than the Greater L.A. area as a whole, which saw an average asking lease rate of $2.75 a square foot and an overall vacancy rate of 6%.

The Greater L.A. market saw nearly 197,000 square feet of positive net absorption during the fourth quarter.
Retail real estate sales in L.A. were strong in 2021. Last year saw $6.3 billion of retail real estate trade hands, up from $4 billion the previous year, according to CBRE data. Transaction volume was also up from the $5.7 billion seen in 2019 before Covid-related lockdowns began.

Experts agree that good retail locations are in high demand.
“We received more than a dozen qualified offers for this deal,” Kozakov said in a statement. “Retail properties that are located within growing residential and mixed-use neighborhoods, such as this one, continue to be very sought after by many different investors, including developers, private family offices and 1031 (exchange) buyers.”

Paola Mendez
Paola Mendez
Paola Mendez graduated from Los Angeles Valley College, then transferred to University of California, and now serves as a Receptionist and Office Assistant to the Los Angeles Business Journal. Paola wears many hats in different departments and is trilingual in English, Spanish and French.

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