Crenshaw Plaza, a 5-acre shopping center on the corner of Slauson Avenue and Crenshaw Boulevard, adjacent to the Hyde Park Metro K line station, is set to undergo a $32 million refinancing deal facilitated by 21 Alpha Group and Intelligent Design Real Estate through Forbright Bank. JLL Capital Markets negotiated the floating-rate loan with a three-year term.
The shopping center, located at 3210 W. Slauson Ave, does not have any major renovations or expansions planned. Rather, the refinancing deal is intended to simply refinance the $31 million loan acquired in 2020 and cover closing costs and future leasing costs. 21 Alpha Group acquired Crenshaw Plaza in a joint venture $33.7 million portfolio deal that also included nearby retail space on 3540 Slauson Avenue.
Crenshaw Plaza is anchored by Vallarta, a supermarket chain that comprises 31.5% of the gross leasable area with a 15-year lease. Most of the other tenants are chains with an average lease of 9.3 years, with a few small businesses and the U.S. Navy also leasing space. Current tenants include Foot Locker, AutoZone, Planet Fitness, and Popeye’s Louisiana Kitchen. With a prime location on two major arterial roads, Crenshaw Plaza has 72,000 vehicles passing through daily. This does not include foot traffic from people who live in the neighborhood, or using the Metro station next to the shopping center.
With an uncertain economy looming in 2025, Crenshaw Plaza and similar properties are incredibly appealing to commercial real estate investors. Retail centers with grocery stores as the anchors offer more stability compared to other types of retail and service businesses. This model offers convenience to guests, who may want to pick up groceries while they run other errands without having to move their cars or change locations entirely.
Consumers cutting back on nonessentials will still need to buy groceries. A stable anchor tenant that is recession-proof offers investors a safer bet if the other commercial tenants do not renew their leases, or need to break them prematurely.
Press release credit: Commercial Property Executive
