Gelb Group of Encino sold and bought a pair of equal value properties in Woodland Hills and Granada Hills in a 1031 exchange, a way for investors to defer paying capital gains tax on the sale of property.
Development and property management firm Gelb Group sold an 8-acre shopping center at 16201 to 16269 San Fernando Mission Blvd., for $23 million to Harridge Development Group of Los Angeles.
According to California Realty Group in Santa Monica, which brokered the deal on behalf of Gelb, Harridge hopes to redevelop the property into a housing and retail community with 440 apartments and 60,000 square feet of retail space.
In the second deal, Gelb bought a 108,000-square-foot office building at 6200 Canoga Ave. in Woodland Hills’ Warner Center for $22 million from Canoga Center Holdings.
Broker Mark Esses with California Realty negotiated both off-market deals on behalf of Gelb. He said Harridge plans to redevelop the Granada Hills Plaza into apartments and retail because it’s the highest and best use of the property.
“Mixed-use development has been a trend for some time now because of the increasing land values,” Esses said. “In the last few years, outdated and obsolete retail centers are being morphed into great mixed-use projects.”
The trend will continue, he added, because of e-commerce’s success, which has caused many big box retailers to close stores.