National Retail Services Group, a division of Savills Studley, sold The Terraces, a +/- 172,913-square-foot regional shopping center located in the affluent community of Rancho Palos Verdes in Los Angeles County, California. The property was purchased by a subsidiary of Retail Opportunity Investments Corporation (ROIC), a publicly traded REIT. The seller was Terraces Subsidiary, LLC, a joint venture of Combined Properties and Saban Capital Group, Inc.
Built in 1959 and renovated in 1988, 2008 and 2016, The Terraces is located at 28821 – 28901 South Western Avenue, with visible frontage along the Western Avenue Retail Corridor and four points of access. One of the most dominant centers serving the south side of the Palos Verdes Peninsula as well as the coastal communities of Palos Verdes Estates, Rancho Palos Verdes, and San Pedro, the center is 89 percent leased. Featuring three terraced levels of shopping, notable tenants include Trader Joes, Marshalls, LA Fitness and Starlight Cinemas.
Savills Studley’s Bill Bauman, executive vice president, and Kyle Miller, corporate managing director, handled the transaction negotiations, bringing the seller and buyer together at the conclusion of a very competitive marketing campaign that attracted offers from multiple institutional investors, including ROIC. Bauman and Miller also represented the seller of the center in 2013.
“The ownership did an excellent job of repositioning an already flourishing center, including further stabilizing the property through extending the leases of key tenants, and elected to capitalize on the created value,” said Miller.
“ROIC, which maintains an exceptional and extensive shopping center portfolio on the west coast, saw an opportunity to acquire a newly remodeled and highly desirable coastal shopping center in the affluent Palos Verdes Peninsula market. The anchor tenants have significantly above-average store sales that are continuing to trend upward,” added Miller.