IRVINE, Calif., February 14, 2018 – Faris Lee Investments has completed the $21 million sale of Southwood Village, a 66,958-square-foot neighborhood retail center in Torrance, Calif.
Faris Lee’s President and CEO Richard Chichester and Senior Managing Partner Donald MacLellan represented the seller, Los Angeles-based BIG Shopping Centers, USA. The South Bay-based buyer, a private investor who was in a 1031 exchange, was represented by Triwell Properties.
“This was a challenging transaction as an approximate $10 million CMBS loan on Southwood Village had to be assumed by the new buyer and subsequently required a large equity payment of $11 million resulting in less than a 50 percent LTV,” said MacLellan. “Faris Lee orchestrated this transaction by procuring an investor to acquire the buyer’s CVS-anchored center in Huntington Beach as part of their downleg which enabled the buyer to purchase Southwood Village as his upleg. In addition, we had to successfully expedite the loan assumption and close escrow within a timely manner to meet the seller’s reverse exchange timing.”
Located at 22214-22252 and 22217-22251 Palos Verdes Blvd. and 5230 Sepulveda Blvd. on 5.52 acres, the property was originally built in the 1950s and was renovated in 2003. Southwood Village is 97 percent occupied with major tenants including Dollar Tree, ACE Hardware, Goodwill and Chevron.
“This asset offered the buyer all the key fundamentals for prime LA area retail real estate,” noted Chichester. “It is located in a dense and affluent location near a new medical use development and other retail destinations. The center also enjoys high tenant occupancy with a mix of daily needs and discount retailers and a significant amount of newer long-term leases in place.”
Southwood Village is within the South Bay submarket which is surrounded by the communities of Torrance, Redondo Beach and the Palos Verdes Peninsula. The property offers a prime location on highly traveled Sepulveda Boulevard at the intersection of Palos Verdes Boulevard which has a combined traffic counts of over 38,000 vehicles per day. Additionally, Southwood Village is just one mile west of recently renovated Del Amo Fashion Center, one mile east of Redondo Beach and two miles north of the iconic Palos Verdes Peninsula.
About Faris Lee Investments: Faris Lee Investments is a leading retail advisory and investment sales firm. The company’s high-level retail investment advisors and sophisticated financing experts develop forward-thinking strategies for all retail acquisitions and dispositions and guide clients through complex transactions. Cumulatively, Faris Lee’s leadership has been involved in more than $20 billion of transactions. Faris Lee's senior advisors are skilled in disposition and acquisition strategies, asset positioning and valuation, marketing, debt and equity structuring, strategic workout and REO solutions and execution. For more information, visit www.farislee.com.