CVS-Anchored Center Sold for $15.5 Million

Representing the continued interest among investors for drugstore-anchored properties, a shopping center in Santa Clarita has sold for $15.5 million, according to Hanley Investment Group Real Estate Advisors. Seco Canyon Village, a 42,134-square-foot shopping center at 22872-22896 Copper Hills Drive and 27911-2795 and 27983 Seco Canyon Road, sold to Eddie Leisner GST Trust June 1, 2000, a family trust in Beverly Hills, according to CoStar Group Inc. The seller was Latitude Management Real Estate Investors Inc., a private investor also in Beverly Hills. The center, built in 2005 on 4.6 acres, was 96 percent occupied at the time of the sale, according to Ed Hanley, president of Hanley Investment. Hanley and Executive Vice President Kevin Fryman represented both parties. Tenants include a drive-through CVS pharmacy, AIM Mail Center, Papa John’s Pizza, Verizon Wireless and Supercuts. Hanley said in a statement that Seco Canyon Village is divided into three separate parcels, including the stand-alone drive-thru CVS. “This allows the buyer the ability to sell the CVS pharmacy ground lease when the loan is paid in full,” added Hanley. Fryman said the market for grocery- and drug-anchored centers in infill markets remains strong with interest from both institutional and private 1031 exchange buyers. Those buyers swap equal-value properties in order to avoid paying capital gains taxes on the sold property. “Other than single-tenant net-leased assets, grocery- and drug-anchored shopping centers continue to be one of the most sought-after retail investments in today’s market,” Hanley said. “Based on the response that we received from the market, it is clear that buyer demand for well-anchored shopping centers in Los Angeles County continues to remain high.”