Two newly developed buildings located within the Destination O-Eight retail power center in Palmdale have sold for a combined $7.35 mil. Together, the properties total 30k sf.
One of the assets, occupied by Planet Fitness, sold for $4.85 mil, while the second property, occupied by Dollar Tree, sold for $2.5 mil. The properties, both freestanding, single-tenant retail buildings, were sold by Orange County-based HFC/PRP Palmdale LLC.
The 18k sf Planet Fitness property is situated on 1.35 acres at 40014 10th Street West. The buyer, a private investor from New York, was represented by Aegis Real Estate. The property sold at a price per square foot of $269 and at a record low cap rate of 6.6 percent for a Planet Fitness-occupied property to date nationally.
The Dollar Tree property totals 12k sf and is located at 40018 10th Street West. The buyer, a family trust from Los Angeles, was represented by Cushman & Wakefield. The property sold at a low cap rate of 5.35 percent and a price per square foot of $208.
Jeff Conover and Chris DePierro of Faris Lee Investments represented the Newport Beach-based seller in the transactions. According to Conover, the properties generated a significant number of bids because they offered new construction, a prime location within Los Angeles County’s Antelope Valley and both tenants are strong national brands on new long-term leases.
Destination O-Eight power center is anchored by Walmart, Hobby Lobby, KOHL’S and Sam’s Club. The center is highly visible from and offers direct access to the Antelope Valley 14 Fwy, which connects the Antelope Valley communities of Palmdale and Lancaster to the Santa Clarita Valley via the 5 Fwy.
Faris Lee is also currently marketing the new Hobby Lobby-occupied building, which is adjacent to the Dollar Tree and Planet Fitness properties and is directly between the Walmart Super Center and Sam’s Club. It is being offered for $11.49 mil and a 5.5% cap rate.