CBRE announced the sale of Sierra Crest Center, a neighborhood retail and office center in Santa Clarita, to a joint venture group for $9.9 million.
CBRE’s Alex Kozakov, Patrick Wade and Matt Greenberg represented the buyer in the transaction.
Located at 27125 Sierra Highway, the two-story, 66,782 square-foot center was originally built in 1991. Sierra Crest Center features a tenant mix of 69 national and regional tenants, including Dunkin’ Donuts, State Farm, Valvoline, Firestone, AT&T, and Farmers Insurance. The property is within one mile of SR-14, a major freeway that connects Santa Clarita to the rest of Southern California.
“With business restrictions constantly fluctuating, we had several income challenges throughout escrow, but were able to overcome those with a motivated seller, strong buyer and experienced loan assumption team,” said Wade.
The new ownership, a consortium of developers led by Synergize Ventures from Danville, Calif., Lotus Equity Partners from New York and Ambassador Equities from Cleveland, has already had collections exceeding 95 percent this month. The development group has projects in 31 states and three countries.
“Santa Clarita is experiencing a large amount of growth due to city improvements and upcoming developments in the area. We had several offers on the property,” Kozakov said. “Investors were drawn to the low price per square foot, strong intrinsic value, and long-term upside once restrictions are lifted and markets stabilize.”
The group plans to position the center better for the future with more diverse service offerings, improved dining and premium retail offerings. The shopping center was the only sale over $3 million in Santa Clarita to occur since May of 2020, according to research.
“Santa Clarita is a thriving pro-business city with excellent demographics, and with new capital and an experienced leadership team with the right business plan, we can turn this center around for the better,” said Joseph Huang, CEO of Synergize Ventures.
The CBRE team also represented the private Los Angeles-based seller in the transaction.