Shopping centers continue to be a hot commodity on the South Coast as retail developments renovate and reposition with new tenants.
Following the trend, Santa Barbara-based real estate firm Investec recently purchased the Village at Newbury Park, a power center at 1015-1025 Broadbeck Drive in Thousand Oaks.
The deal adds to Investec’s growing portfolio of retail properties in the area, which already includes two others in nearby Camarillo — the Camarillo Town Center anchored by Target and Walmart and the Central Plaza shopping center anchored by Vons and Kmart.
The asking price for the 23,000-plus-square-foot development was $14.5 million. Investec did not disclose the final sale price.
“This shopping center fits nicely into our portfolio in the Newbury Park, Camarillo area,” said Kenny Slaught, president of Investec in an email. “We have had an ownership interest in the directly adjacent Home Depot, Target center for the past 15 years and have been very pleased with how this retail center performs.”
According to property information from the Hagelis Group, the real estate firm that represented Investec in the deal, the center, which has nearly 100 percent occupancy, takes in roughly $775,000 in net operating income. MOD Super Fast Pizza and The Habit Burger Grill pay more than $100,000 in annual rent. Jamba Juice has the next largest lease at just over $68,000 in annual rent for roughly 1,600 square feet of space.
The Village at Newbury Park, built in 2001, is an extension of a larger power center development and Slaught said the firm is looking forward to the build-out of the parcel directly across the from the retail center. According to those familiar with the deal, home improvement store Lowe’s and LA Fitness are in line to sign leases at the expanding development once final plans are approved by the city of Thousand Oaks.
The city approved a Costco for this site in 2007 and a larger Lowe’s concept in 2010. Revised development plans for this site are in the process of being submitted to the city, Slaught said in an email to the Business Times. According to Slaught, the “very good possibility” of another 170,000 square feet of new big box retail development directly adjacent to the Villages at Newbury Park was a strong motivator to purchase the center. “Being located in the middle of a Home Depot, Target, Lowe’s and LA Fitness power center is very good place to be for our tenants who are primarily restaurants.”
Shopping centers in the Tri-Counties have been on the rebound for the last several years, with large properties changing hands at a steady pace. Renovations at other mall and power center properties are also wrapping up or getting underway.
Ventura Village Shopping Center in Ventura sold to an undisclosed private company for $23.3 million in late 2014. The seller was Regency Centers, a publicly-traded real estate investment trust headquartered in Jacksonville, Florida. In March the Oaks Mall in Thousand Oaks, Camarillo Premium Outlets and Pacific View Mall in Ventura, the crown jewels of retailing in Ventura County, were about to trade hands before owner Santa Monica-based Macerich shot down the hostile takeover bid from Simon Property Group, owner of the outlets in Camarillo.
Additionally, real estate firm CBRE recently announced the Oakbrook Shopping Center is moving forward with a facade renovation as part of a multimillion dollar revitalization of the 34-year-old grocery -anchored center, located on the corner of Erbes Road and Avenida de los Arboles in Thousand Oaks. Improvements are anticipated to be complete late this summer.
“This renovation will result in a transformational repositioning of the property that will improve the customer experience for residents and customers within Thousand Oaks,” said Mike McAndrews of Tiarna Real Estate Services, the firm that manages the center.
In addition, the anchor tenant, Vons, recently completely an interior remodel, including an upgraded floral and produce department with an increased organic selection, enhanced bakery and deli departments, and an improved health and beauty collection.
The renovations will give this established shopping center a fresh makeover and also makes a statement to any new retailers considering this market, demonstrating the landlord is willing to reinvest in the asset, according to CBRE broker Lisa Engel.
Going forward, the retail segment in the Tri-Counties will likely continue its streak as fertile ground for deals.
• Contact Elijah Brumback at [email protected]