SYLMAR-BASED VALLARTA SUPERMARKETS MAKES $14 MILLION PURCHASE OF UNFINISHED BAKERSFIELD CENTER, COLLIERS REPORTS
BAKERSFIELD, CA – February 27, 2013 – (RealEstateRama) — Vallarta Supermarkets, a Sylmar, California-based company that is one of the region’s largest grocery chains catering to the Hispanic market, has purchased a neighborhood center in Bakersfield, Calif., for $14 million, where it will now become both the anchor tenant and the center’s owner, according to Colliers International’s Commercial Investment Services Group.
Known as The Grove and totaling 100,756 square feet, the center was a victim of the recession and left unfinished by its original and now-bankrupt developer. Tom Lagos and El Warner of Colliers International’s downtown Los Angeles office were retained by the court-appointed bankruptcy receiver to sell the property.
“This is another example of a growing trend among regional grocery chains owning the centers that they anchor,” said Lagos. “By doing so, they can control co-tenancy and reap profits down the road from owning the real estate.”
On its developed portion, current tenants, in addition to a 42,000-square-foot Vallarta Supermarket site, include a free-standing, drive-through McDonald’s Restaurant, a Subway Sandwich shop, and an AT&T Wireless store. Family Dollar will be a co-anchor on the site when it takes occupancy of a 9,000-square-foot location now under construction.
“We received tremendous interest on this sale and our marketing efforts yielded 14 initial offers from qualified investors,” said Lagos “Through the competitive nature of the bidding process, the value was driven approximately 10% over our initial projections.” Ultimately, Vallarta Supermarkets, which had the right of first refusal on acquiring the center, exercised that right and smartly made the purchase, Lagos noted. The center is located on busy Panama Lane, which also houses such well-known national and regional retailers as Lowes, Wal-Mart, In-n-Out, and Starbucks on neighboring sites.
About Colliers International
Colliers International is the third largest commercial real estate services company in the world with 12,500 professionals operating out of more than 500 offices in 61 countries. A subsidiary of FirstService Corporation (NASDAQ: FSRV;TSX: FSV and FSV.PR.U), the firm focuses on accelerating success for its clients by seamlessly providing a full range of services to real estate users, owners and investors worldwide, including global corporate solutions, brokerage, property and asset management, hotel investment sales and consulting, valuation, consulting and appraisal services, mortgage banking and research. Commercial Property Executive and Multi-Housing News magazines ranked Colliers International as the top U.S. real estate company and the latest annual survey by the Lipsey Company ranked Colliers International as the second-most recognized commercial real estate brand in the world. Since 1908, Colliers has stood at the forefront of the Los Angeles real estate industry. Tod ay, Colliers operates seven office throughout Greater Los Angeles, including Downtown Los Angeles, Orange County, Inland Empire, South Bay, San Fernando Valley, Santa Clarita, and Commerce. More at www.colliers.com and www.twitter.com/colliersgla.
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