LOS ANGELES-Weingarten Realty Investors has completed the acquisition of 8000 Sunset for $99 million. The deal represents approximately a 6% capitalization rate.
â€œ8000 Sunset is the quality shopping center that we are focused on in our recycling initiative,â€ explainsÂ Drew Alexander, president and CEO. â€œThe centerâ€™s retailers, Trader Joeâ€™s, Pei Wei and Starbucks, are all existing relationships and combined with the superior demographics including the extreme density and high household incomes as well as strong barriers to entry represents the quality we are pursuing in our acquisition program today.â€
Year-to-date, the firm has acquired acquisitions totaling roughly $121 million. 8000 Sunset is a 171,400-square-foot grocery anchored shopping center, located on the Sunset Strip, in the West Hollywood submarket, of Los Angeles. Positioned at the corner of Sunset Boulevard and Crescent Heights Boulevard, it is located at one of the most bustling intersections in Los Angeles with over 140,000 vehicles passing by the site each day, according to a prepared statement.
This densely populated, infill location, is surrounded by exceptionally affluent residential communities including Beverly Hills, West Hollywood and Hollywood Hills, according to the release, and boasts â€œstrong three-mile trade area demographics including a population density of 240,000 people and average household incomes of $104,000.â€
The property is currently 94% leased and is anchored by the California-based, specialty grocer, Trader Joe's along with CB2 (â€œCrate & Barrelâ€), Sundance Cinema and Crunch Fitness.
In addition, during the second quarter, Weingarten Realty disposed of $45.8 million of non-core properties, bringing the year-to-date dispositions to $476 million. This includes the sale of its wholly-ownedÂ industrial portfolioÂ for $382.4 million. Â
The firm did not respond to further GlobeSt.com queries by deadline.Â Bob Dishler, VP of Jones Lang LaSalle retail, who was not involved in the deal, tells GlobeSt.com that the Sunset Strip is a mecca of great clubs, entertainment venues and restaurants and appeals to a young and very hip crowd as well as being a major tourist area. "Over the last several years a lot of new restaurants/retail have opened and slowly transformed and upgraded the look and feel of the Sunset Corridor," he explains. "With the density of population and the affluence of the immediate trade areas, retail/entertainment will continue to evolve and upgrade which in turn will increase overall rents and occupancy on the Strip." He adds that "Over the next several years I see the continuation of those upgrades as well as an increase in not only residential rates but retail as a whole."