February 14, 2018— HFF is marketing for sale Lakewood Square, a 187,000-square-foot market-leading community retail center located in the Southern California community of Lakewood, California. Anchored by CVS, Hobby Lobby, Michaels and Cost Plus World Market, Lakewood Square features a synergistic mix of national retailers with the ability to grow NOI through mark-to-market renewal and retenanting opportunities. Additionally, the center’s diverse tenant roster is resistant to internet/e-commerce trends by offering a variety of daily needs services and uses that include a drug store with a pharmacy, hobby/arts and craft stores, fitness, food, health and beauty and three banks.
The property is situated on 12.70 acres at 4000-4042 Hardwick Street and 5021-5195 Lakewood Boulevard. Strategically positioned at the intersection of Lakewood Boulevard and Hardwick Street, Lakewood Square is exposed to more than 42,000 vehicles per day within the heart of Lakewood’s primary retail node, which is adjacent to Long Beach and easily accessible with proximity to the 710, 405, 91 and 605 Freeways. The retail center for sale is directly across the street from Lakewood Center, a two million-square-foot, super-regional mall that draws more than 14 million visitors each year.
Retail Center for Sale Investment Highlights
- National Tenant Income Security and Stable Rent Roll with Tenant Longevity: More than 80 percent of the property is leased to credit or nationally recognized tenants, many of which have recently renewed or extended their leases. Ten tenants (totaling 70 percent of the leased GLA) have been in occupancy for 15 years or longer, demonstrating the business success and long-term commitment of the tenant base.
- Tangible NOI Growth: There are several opportunities to capitalize on below-market rents for existing tenants by renewing or re-tenanting at significantly higher market rent levels upon expiration.
- Long-Term Value Creation and Remerchandising Opportunity: Lakewood Square provides long-term value appreciation through the opportunity to improve the tenant mix over time as existing tenants roll to market rates and have the potential to be repurposed with new uses, such as a grocery store.
- Exceptionally Affluent and Dense Trade Area: The immediate trade area surrounding Lakewood Square is both affluent (average household incomes within a one-mile radius exceed $98,000) and extremely dense (population of more than 722,000 within a five-mile radius).
Lakewood Square offers investors the opportunity to acquire a prominent retail center with value creation opportunities in a core, infill Southern California location. For more information on this commercial property other retail properties for sale, properties for sale, please contact Bryan Ley, Gleb Lvovich or Justin Kundrak in HFF’s Los Angeles and Orange County offices.