Seco Canyon Village, a 42,000-square-foot retail center at the corner of Seco Canyon Road and Copperhill Drive in Santa Clarita, has been sold for $15.5 million.
The center, built in 2005, is anchored by a CVS pharmacy, and includes an AIM Mail Center, Papa John’s Pizza, Verizon Wireless and Supercuts.
The buyer was a private 1031 exchange buyer, a family trust, and the seller was a private investor. Both are based in Beverly Hills and both were represented by Ed Hanley, president, and Kevin Fryman, executive vice president of Hanley Investment Group Real Estate Advisors.
“After generating multiple offers, we were able to close escrow with an exchange buyer at list price,” Hanley said in a statement. “The buyer assumed a low-leverage life insurance loan, which met their exchange objectives.”
The 4.55-acre shopping center was 96 percent occupied at the time of the sale.
According to Fryman, CVS represents 41 percent of the tenancy and has successfully operated at the center since it was built in 2005. Outside of CVS, 100 percent of the tenants have signed new leases or extended their existing lease; 82 percent of the tenants have been located in the center since 2011 or earlier.
Hanley said that Seco Canyon Village is divided into three parcels, including the stand-alone drive-thru CVS/pharmacy. “This allows the buyer the ability to sell the CVS/pharmacy ground lease when the loan is paid in full,” added Hanley.
Seco Canyon Village also benefits from the area’s affluent demographics. Average household income within one mile of the shopping center is in excess of $131,000. “With a ‘daily needs’ anchor like CVS/pharmacy, an irreplaceable location, high-quality 2005 construction and excellent demographics, Seco Canyon Village offers the buyer an extraordinary pride-of-ownership investment opportunity,” Fryman said.
“Other than single-tenant net-leased assets, grocery- and drug-anchored shopping centers continue to be one of the most sought-after retail investments in today’s market,” said Hanley. “Based on the response that we received from the market, it is clear that buyer demand for well-anchored shopping centers in Los Angeles County continues to remain high.”
Fryman adds that the market for grocery- and drug-anchored centers in infill markets remains strong with interest from both the institutional and private 1031 exchange buyers. “In 2017, we have seen an increase in supply as sellers recognize that today represents an ideal time to sell,” Fryman explained. “There still remains limited properties available similar to Seco Canyon Village in both size and quality.”
