Overview
Newmark Pacific Capital Markets is pleased to offer for sale the Southbay Pavilion (the “Property”), a highly-infill, 1,000,000 square foot (643,032 SF owned GLA) super regional shopping center immediately adjacent to Interstate 405 in the densely populated Los Angeles South Bay in Carson, California.
Currently 97% leased, Southbay Pavilion is anchored by Target (NAP, ±1.8 million annual visits), IKEA (one of only 5 store locations in Southern California, ±1.6 million annual visits), a state-of-the-art Cinemark Theatres, JCPenney and more than 75 stores and restaurants, including the adjacent and separately-owned 180,000 square foot Shops at Southbay Pavilion, which includes ALDI, Ross Dress for Less, Burlington, In-N-Out Burger, and also serves a primary driver for the in-line stores.
Located on a massive 68-acre site (43-acres owned), Southbay Pavilion occupies one of the most coveted, infill locations in all of Los Angeles with direct access off the 405 Freeway from Avalon Boulevard, near the convergence of the 110 Freeway, providing excellent access and visibility. Further, the densely populated Carson submarket is strategically located between West LA and Orange County, and also offers proximity to LAX, Downtown LA, the Alameda Corridor, and the Port of Los Angeles.
Southbay Pavilion presents a unique opportunity for investors to acquire a stabilized well located asset with a combination of strong cash flow and embedded value-add opportunity.
Investment Highlights
PROMINENT SOUTH BAY LOS ANGELES LOCATION
Southbay Pavilion is prominently positioned along the 405 Freeway where daily traffic counts exceed 272,000 CPD. Additional direct access points from the 91, 710, and 110 Freeways expand the drawing power of the Property, leading to increased tenant sales volumes and consumer visits. Over 10 million people visited Southbay Pavilion over the last twelve months (Placer.ai).
EXCEPTIONAL DEMOGRAPHICS | EXPANDED TRADE AREA
Southbay Pavilion’s immediate trade area consists of over 600,000 and 1,300,000 million residents with AHHI exceeding $122,229 and $112,594 within a 3-mile and 5-mile radius respectively. IKEA provides the ultimate draw and expands the trade area considerably with the closest IKEA 24 miles away in Duarte California.
STABLE CASH FLOW
The Property is currently 97% leased to 54 tenants providing stable cash flow. Further, ULTA, CAVA, and Mattress Firm recently opened, showcasing national credit tenant’s desire to be part of high quality, well located shopping centers.
REDEVELOPMENT POTENTIAL
Favorable zoning and scalable land ownership offer significant control for future redevelopment. IKEA is operating an average store on over 11.4 acres of land with just over 200,000 square feet of improvements. This store, based on customer traffic, ranks 22 out of 50 US based stores and 7 of 8 California stores. In addition, the JCPenny’s parcel consisting of over 13.28 acres of land has a Landlord right to terminate with two years notice, providing the ultimate flexibility for an owner to re-purpose the existing improvements at higher rents or potential multifamily.
STRONG TRADE AREA FUNDAMENTALS
South Bay Los Angeles is one of the most dynamic and diverse Southern California sub-markets due to its strong corporate employment and proximity to major transit hubs such as the Los Angeles & Long Beach ports and Los Angles International & Long Beach airports. Its pro-business environment, unmatched coastal climate and active lifestyle ranks the as one of the best “live, work, play” communities in the United States. The trade area encompasses over 160 square miles and includes 15 incorporated cities, over 2.6 million residents.
LISTING TERMS
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