Gateway at Burbank
Gateway of Burbank proved to be a dominant grocery and drug store anchored shopping at the center of a dense infill location. The center had a wealth of credit tenants and all the ingredients for a trophy asset. Despite the center’s strengths, our team had to overcome logistical challenges that would concern many institutional investors such as its a typical layout, CVS’s healthy rent and near-term expiration, and the fact that Ralphs’ lease was set to expire in less than five years. Additionally, Gateway of Burbank had above market debt that needed to be defeated or assumed.
Our main focus was to bring the asset to the market through an aggressive strategy and capitalize on our long-standing, institutional relationships. Timing was on our side as there was a current lack of grocery-anchored inventory on the market. We pushed value by creating a highly competitive environment, provided certainty that Ralphs would renew their lease, and would negotiate the loan assumption or defeasance process. Collectively, our strategy covered all possible objections and provided our institutional clients with the confidence needed to submit a bid on the asset.
We collected several offers and created a highly competitive environment. Our team ultimately sold the asset to a large institution at the highest price paid for a class-A retail asset since 2007. The sale was also the largest regional retail transaction for Colliers International in 2014.