Malibu Retail Center Commands $80M
The Gerschel Family and Soboroff Partners have sold The Park at Cross Creek, a 39,350-square-foot retail center in Malibu, Calif. A private investor acquired the asset for $80 million, according to industry sources.
Newmark brokered the transaction, with Vice Chair Bill Bauman and Executive Managing Director Kyle Miller working on behalf of both parties.
At the time of the deal, The Park at Cross Creek was fully leased to 14 tenants. PacificWest Asset Management Corp. will manage and operate the shopping center.
The Park at Cross Creek became subject to a $34 million loan from UBS Bank USA back in 2020, according to CommercialEdge data. The next year, Deutsche Bank provided a $37.7 million loan, the same source shows.
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Completed in 2019, The Park at Cross Creek encompasses six buildings on some 6 acres. The Park at Cross Creek also features a learning garden run by Big Green, a playground, an equestrian facility, a lounge area with rocking chairs and an open-air event space.
Anchored by a 24,529-square-foot custom-built Whole Foods Market, The Park at Cross Creek also features a mix of retailers such as Blue Bottle Coffee, Howdy’s Sonrisa Cafe, Barefoot Dreams, Malibu Sushi, Irv’s Burgers, Sparky’s Sports Bar and a Tesla showroom.
Los Angeles retail shifts gears
Located at 23401 Civic Center Way, The Park at Cross Creek is within Los Angeles’ Pacific Palisades-Malibu submarket. The retail center is near the Pacific Coast Highway.
The Los Angeles retail market began the year with a significant change in trends, experiencing a return to negative net absorption, higher vacancy rates and notable shifts in leasing activity. In the first quarter of this year, the metro recorded 1.8 million square feet of retail space under construction and approximately 49,000 square feet of new inventory, according to a recent Colliers report. The average asking lease rate rose to $2.85 per square foot, yet leasing activity saw a 23 percent decline.
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