WEST HILLS, CALIF. — Retail Opportunity Investments Corp. (ROI Corp.) has entered into an agreement to purchase Fallbrook Center in the West San Fernando Valley of the Los Angeles area for $210 million. The seller is General Growth properties, which has owned the center since 1983. The transaction is expected to close this quarter.
Fallbrook Center has approximately 1.1 million square feet of gross leasable area. Tenants of the center include Ralph's, Trader Joe's and Sprouts, as well as Walmart, Home Depot, Target and Kohl's. The center is 98 percent leased, and 87 percent of the tenants are anchors with an average remaining lease term of 12 years.
“Fallbrook is one of the strongest shopping centers in the San Fernando Valley and is an excellent strategic fit with our existing portfolio given its location and market position, as well as its diverse mix of tenants, many of which are necessity-based retailers,” says Stuart Tanz, president and CEO of Retail Opportunity Investments (NASDAQ: ROIC). “In addition to the strategic attributes, we expect that the transaction will be immediately accretive and enhance our long-term, stable cash flow.”
Fallbrook Center’s trade area demographics include a population of 474,000 and an annual household income of $100,000.
Of the leased tenants at Fallbrook Center, 66 percent are investment-grade rated. National retailers comprise 96 percent of the tenants.
San Diego-based Retail Opportunity Investments Corp. is a self-managed real estate investment trust that specializes in the acquisition, ownership and management of community and neighborhood shopping centers, anchored by national or regional supermarkets and drug stores. Retail Opportunity Investments owns 56 shopping centers totaling approximately 6 million square feet.
The stock price of Retail Opportunity Investment closed at $15.92 per share on Monday, June 2, up 13.3 percent from $14.05 per share on May 31, 2013.
— Scott Reid