The New York City real estate investment firm Blackstone Group has grown its local portfolio with a recent purchase of a shopping center next to the Hollywood Burbank Airport.
The firm has bought the Plaza Del Sol shopping center at 10950 to 10970 Sherman Way in Burbank and North Hollywood for $45.7 million, according to CoStar Group Inc.
Blackstone purchased it under one of its funds, the Blackstone Real Estate Income Trust Inc. The seller was Tourmaline Capital.
The 166,000-square-foot property is anchored by a Vallarta Supermarket and is 100 percent occupied by tenants including a Planet Fitness.
Holliday Fenoglio Fowler L.P. of Newport Beach, which marketed the property on behalf of Tourmaline, said the property was initially a Costco store until retrofitted in 2005 and 2006 into a mixed-use center with retail tenants facing the street and industrial space in the back intended for “last-mile” tenants.
There’s space for future development as well, according to HFF.
Gleb Lvovich and Bryan Ley with HFF negotiated the sale. Lvovich said in a statement that the sale reflects “the incredible demand for ethnic retail along the West Coast.”
“With being in a deep infill market and its proximity to residential and the workforce, Plaza Del Sol is a great example of growing investor demand for successful mixed-use retail centers,” Ley added in a statement. “The blend of retail and the industrial components show that the two uses are great partners in a successful project.”
It’s Blackstone’s latest deal in Burbank.
In September, the real estate giant finalized the acquisition of a massive 3-plus-million-square-feet purchase of several iconic buildings in Burbank’s Media District. The value of the portfolio was $1.7 billion. The properties host many top media and entertainment companies, including Walt Disney Co. and Yahoo.
Update: This story has been updated to include the $45.7 million price. The original price related to only one of the three properties purchased, but CoStar had originally entered multiple addresses on the sale report.