Warner Plaza, a shopping center with about 115,000 square feet of retail space, has sold in a non-cash deal worth $76.3 million.
Seller Plaza International, a private company that has owned the asset for 41 years, sold it to the San Diego-based REIT Retail Opportunity Investment Corp. in exchange for shares. Because the deal, known as an UPREIT or "umbrella partnership real estate investment trust," involves no cash, it qualifies for favorable tax treatment.
“This allowed the seller to defer capital gains taxes and benefit from the growth of a stable and well-positioned real estate company that pays a healthy dividend,” Kyle Miller, a senior managing director at brokerage Savills Studley who arranged the sale, said in a statement.
Warner Plaza is located at 21841 Ventura Blvd. in Woodland Hills. The property is anchored by Sprouts Farmers Market. Other tenants include Coffee Bean & Tea Leaf, Dickey's BBQ and Jerry’s Famous Deli.
Retail Opportunity Investment Corp. owns 72 shopping centers in California, Washington and Oregon.