DRA Advisors Sheds Another SoCal Retail Plaza for $48M
Tenants include Amazon Fresh and Hobby Lobby
By Nick Trombola May 3, 2024 12:45 pm
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DRA Advisors has sold off yet another open-air retail plaza in Southern California.
Texas-based property management firm AlbaneseCormier Holdings paid New York-based private equity firm DRA $47.8 million for the Rancho Las Palmas Shopping Center in Rancho Mirage, Calif., 11 miles southeast of Downtown Palm Springs, according to data sourced from Vizzda.
Bryan Ley of JLL Capital Markets represented DRA.
The 170,490-square-foot shopping complex at 42452 Bob Hope Drive comprises 10 buildings built in the early 1980s that underwent renovations in 2016 and 2022, according to AlbaneseCormier. Tenants at the property include Hobby Lobby with 48,175 square feet, Amazon Fresh with 30,126 square feet, CVS Pharmacy with just over 14,000 square feet and Wells Fargo (WFC) with 8,640 square feet.
“This acquisition provides an attractive mix of investment-grade credit and necessity-based tenancy in an established, high-growth market.” AlbaneseCormier Chief Investment Officer Clinton Mitchell said in a statement.
A representative for DRA Advisors did not immediately respond to a request for comment.
Grocery-anchored retail properties are all the rage in Southern California. The sale of Rancho Las Palmas comes less than a month after DRA sold the 357,000-square-foot Esplanade Shopping Center in Oxnard, Calif., on the other side of Los Angeles. Buyer Primestor Development bought that property for $90 million, or a slight discount from the $95 million DRA paid for it in 2018.
Meanwhile, real estate investment trust Site Centers Corporation sold a 208,572-square-foot, fully-leased shopping center in Orange County, Calif. late last year for $53 million. The name of the private buyer was not disclosed.
Nick Trombola can be reached at ntrombola@commercialobserver.com.
