IREA closes $25M Fallbrook Center in West Hills

HIGH-PROFILE TENANTS ANCHOR VALLEY RETAIL DEAL

BY Jacquelyn Ryan, LA Business Journal

Monday, Dec 10, 2012

In one of the largest retail property sales in the San Fernando Valley this year, the Fallbrook Center mall’s Wal-Mart and Burlington Coat Factory buildings were sold last month.

A private family trust purchased the 250,000 square feet of properties at 6433 Fallbrook Ave. in West Hills for $25 million from Fairbanks Equity Ltd., which developed the properties as part of the mall in the mid-1980s.

The total price was the third highest int he Valley this year after only the sale of four power center properties at 19350 Nordhoff St. in Northridge for $90 million and the sale of the former Montgomery Ward department store property at 14665 Roscoe Blvd. in Panorama city for $25.6 million.

General Growth Properties Inc own nearly all of the 75-acre, 888,000-square-foot open-air Fallbrook Center but Fairbanks had owned the Wal-Mart and Burlington properties, as well as some land under Ross Dress for Less store

The high price related to the properties' strong capitalization rate, or rate of return based on net operating income produced by a property divided by its capital cost.

"For buyers, it was a solid cap rate and the sellers obviously had a lot of equity in the property and had inflow of capital for another site," he said. "So it was a win-win, I think."

The new owner plans to continue to operate the buildings as they are.