Target is an anchor at Eagle Rock Plaza.
Eastern Real Estate and Atlas Capital Group have purchased the Eagle Rock Plaza for $76 million.
The sale spanned 466,000 square feet and 22 acres at 2700 Colorado Blvd. and 2560 Colorado Blvd.
The 2560 Colorado Blvd. portion of the site is a 20,000-square-foot medical office building leased to Adventist Health.
The retail component of the sale covers 20 acres. Its anchors include Target, Macy’s, Seafood City and Fitness 19.
“Eagle Rock Plaza sits in a prime location within the Los Angeles market, with high visibility, excellent access and strong local demographics. There is tremendous opportunity to reposition this property in line with today’s evolving retail landscape. Eagle Rock Plaza will remain a hub that serves the needs of the community for years to come,” the firms said in a statement.
Newmark Group Inc.’s Bill Bauman, Kyle Miller, Anthony Muhlstein, Pete Bethea and Glenn Rudy handled the sale.
Miller said the site has a long history. Seller LNR Partners started interviewing brokers in 2019, according to Miller, and the site hit the market in January 2020. Offers were due in March 2020.
Miller said there were 11 offers, but LNR Partners decided to pause due to the Covid-19 pandemic.
“When Covid happened, LNR elected not to follow through and then reengaged us in December of 2020 to kickstart the marketing again, which we did in January of 2021,” Miller said.
At that time, Miller said the property attracted 10 offers.
“All the same groups that circled the first time around were there and some new companies including the groups that partnered on this,” he said.
The buyers, Miller added, “both pursued it separately and then at the end of it, ended up coming together and partnering on this deal.”
Despite difficulties faced by retail during the Covid-19 pandemic, Miller said the property’s unique features still made it very desirable.
“During Covid, retail probably got hit the hardest out of any sector other than hospitality but if you look at this site and where it sits, there hasn’t been a site this large in an infill location where you would control the whole site,” he said.
Many big-box stores actually own their real estate, but the entire property at Eagle Rock Plaza is leased, which makes it easier for buyers to make changes, especially as Macy’s lease expires in 2023, Miller said.
“There was an immediate opportunity to get in there and deploy a redevelopment strategy,” he said.
Miller added that it was too early to know exact plans for the center, but the “size and scope of the project” were attractive to the buyers.
There has been discussion about keeping a portion of the property as traditional retail and adding a residential component.
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