A shopping centre anchored by Target in Southern California's San Gabriel Valley has successfully been refinanced, as announced by Walker & Dunlop. Wells Fargo provided $46 million in fixed, full-term financing for Rosemead Place in Rosemead, California, in Los Angeles County. The property encompasses an area of 336,718 square feet. According to PropertyShark, MPM Partners, led by Herbert Yang, is the owner of the property.
The shopping centre is located approximately 10 miles east of downtown Los Angeles, at 3506-3864 Rosemead Boulevard, at the intersection with Interstate 10. In addition to Target, tenants at Rosemead Place include LA Fitness, Ross Dress for Less, PetSmart, ULTA Beauty and Dollar Tree.
Challenges and Opportunities in the Market
Trevor Fase and Lynn Pearson led the Walker & Dunlop team for the transaction, while Joel Minugh and James Ko represented Wells Fargo internally. Fase stated that well-located retail properties anchored by major tenants, such as Rosemead Place, continue to be viewed very positively by a variety of capital providers, including insurance companies, commercial mortgage-backed security lenders, and regional and national banks. He further explained that the transaction was successfully completed in less than 60 days, despite various moving factors, including short-term lease take-overs.
The retail property market in the San Gabriel Valley shows pressure on landlords, with asking rents decreasing, according to an analysis by Lee & Associates for the first quarter. The market's average triple-net asking rent has slightly declined over the past four quarters and stands at approximately $2.81 per square foot per month.
- —Financing volume: $46 million
- —Property area: 336,718 square feet
- —Anchor tenant: Target
- —Number of tenants: At least six known retail chains
This refinancing underscores the ongoing appeal of stable retail properties in key regions, even within a market environment that presents certain challenges for asking rents. The ability to quickly complete a transaction of this magnitude indicates confidence in the long-term value stability of the property and the success of its location.
