Exclusive: Kimco, Costco Make $59M LA Deal
The property debuted in 1990.
Kimco Realty has sold Costco Plaza, a 195,473-square-foot retail center in Alhambra, Calif., for $58.9 million, according to Yardi Matrix information. Costco Wholesale acquired the asset for about $301 per square foot.
This is the first time the six-building center changed hands since debuting in 1990. Kimco Realty remains the property manager.
A Costco spokesperson told Commercial Property Executive that the primary purpose of this acquisition was to purchase the fee interest in the property. Additionally, the company acquired an adjacent asset, also previously owned by Kimco, as well as other properties in Phoenix, Corona, Calif., and San Diego that it leases.
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The transaction is part of an ongoing program of selling low-growth assets and redeploying into higher-growth, grocery-anchored centers, Kimco Realty President & CIO Ross Cooper told CPE. “These were quality assets with quality credit, but they were long-term, flat leases with very little embedded growth and the private market pays a premium for that kind of certainty,” he added.
In its second-quarter results, Kimco Realty said it completed the sale of four Costco-anchored assets, comprising two shopping centers and two ground-lease parcels, for roughly $127 million. Proceeds are intended for future 1031 exchange investments.
Sitting on more than 18 acres at 2207 W. Commonwealth Ave., Costco Plaza is close to a Target and an Aldi, as well as Fremont Plaza shopping mall. Alhambra’s city center is less than 2 miles away, while downtown Los Angeles is within 7 miles southwest.
As of 2025, the retail center served a population of 723,271 individuals on a five-mile radius, with an average household income of $136,195 per year, according to a Kimco Realty property brochure.
Costco already operates a warehouse at the property, along with a gas station, tire service center, food court, pharmacy, optical department and hearing aid center. The property also has about 1,080 parking spaces.
Retail pricing softens across LA
Los Angeles retail investment activity showed some pricing pressure in the second quarter, even as sizable trades continued to close, according to a Kidder Mathews report. The average sale price fell to $354 per square foot, down 3.6 percent year-over-year and below the $468 per square foot recorded in the previous quarter. Cap rates moved higher, reaching 6.2 percent, up 20 basis points from a year earlier.
One of the largest deals in the metro was Brookfield Properties’ sale of FIGat7th, a 330,784-square-foot retail asset in downtown Los Angeles. The property changed hands for $68.5 million, or $207 per square foot, well below the metro’s average price.
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