The 111,925 square feet, 8.12 Acres, Santa Fe Springs Promenade, sells to LA Investment Group for $31,900,000.
The retail center anchored by national tenants, was listed with two large commercial real estate firms for two years before WRE.
Previous to WRE, the large firms based the property value solely on cap rate and wanted to lower the price to $29 million.
Ownership was not in agreement with the guidance of the large firms and did not want to lower the price.
They wanted a new way of positioning the property and chose WRE to find out a way to unlock the value that they expected. Because of demographics and the potential for development, WRE looked at it as a covered land play.
WRE marketed the property to developers who saw the value in future development. Rather than simply marketing this property as a leased retail center, WRE saw it as a development opportunity, with even more value in the land. The smaller, more targeted market profile created competition for the property which was sold to a Local LA investor for $31,900,000.
WRE was able to sell it at a 10% premium over the previous brokers. Unsophisticated brokers only look at cap rate.
Cap rate isn't the best way to value properties. It takes a more advanced broker to find and unlock the intrinsic value of a property.
Call our Investment Team today and see what value WRE can unlock for your property.