IRA Capital Sells Retail Asset for $66M
The Los Angeles-area property previously traded for $50 million.
IRA Capital has sold Poinsettia Plaza, a 157,322-square-foot shopping center in Ventura, Calif., for $66 million, with the assistance of Newmark. According to CommercialEdge data, the property previously traded back in 2016 for $50 million.
Ross, Office Depot, Petco, FedEx and Lamps have been anchoring the property since its opening in 1976. Aldi has also recently signed a long-term commitment as anchor tenant at Poinsettia Plaza, which was 96.5 percent leased at the time of sale. Its roster features credit tenants with an average tenure of more than 20 years.
The asset underwent recent renovations, including the modernization of existing facades, revamping the landscaping, improving the parking lot with slurry and striping and adding new signage.
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Poinsettia Plaza occupies nearly 12 acres at 4220-4360 E. Main St. and 4687-4731 Telephone Road, in the heart of the rapidly growing Ventura County. The retail property is easily accessible via four major roads, including Freeway 101 and Highway 126, with daily traffic counts exceeding 469,000 vehicles.
Pete Bethea, vice chairman at Newmark, along with Senior Managing Directors Rob Ippolito and Glenn Rudy, acted as representatives for the seller.
Shifting retail trends
A recent Cushman & Wakefield report showed that during the fourth quarter of 2022, the retail sector showcased a growth pattern. As robust demand led to a historic low in shopping center vacancy, the rate dropped by 20 basis points to 5.7 percent.
At the same time, net absorption picked up, reaching 10.9 million square feet, up from the average 9.4 million square feet seen during the year’s second and third quarters. The same source reveals that in Los Angeles, net absorption totaled almost 72,978 square feet in the last quarter of 2022, while vacancy clocked in at 5.7 percent.
Changes in consumer behavior, economic uncertainty and ongoing supply chain issues have determined retailers to put more effort into ensuring they can fulfill consumer expectations both online and in-person. Experts believe the supply chain issues will begin to moderate this year, although the supply-demand imbalance is here to stay.
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