Two-Tenant Retail Property in Lakewood Center Sells for $38.7 Million

A notable retail property transaction recently closed in Lakewood, California, involving a two-tenant asset situated within the prominent Lakewood Center. This 154,997-square-foot property, encompassing 14.7 acres, was sold for $38.7 million to a high-net-worth family office. The seller was a consortium comprising multiple owners.

The deal was facilitated by Faris Lee Investments, with Don MacLellan, Jeff Conover, Scott DeYoung, and Greg Lukosky representing both parties. The property is anchored by long-standing tenants, The Home Depot and Albertsons, each having operated at this location for more than 30 years. Both retailers hold absolute below-market ground leases for their respective parcels, providing a secure, albeit potentially undervalued, income stream. This acquisition underscores the enduring appeal of established retail assets in strong markets, particularly those with essential service tenants and long-term lease commitments, which can offer stable returns for investors seeking predictable cash flow. For developers and investors, this transaction exemplifies the value placed on properties with strong anchors and favorable lease terms, even when those terms are below current market rates.