Crenshaw Plaza Secures $32 Million in Senior Financing
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The principals of 21 Alpha Group and Intelligent Design Real Estate have successfully secured $32 million in senior financing from Forbright Bank for Crenshaw Plaza, a 146,901-square-foot grocery-anchored retail center located in Los Angeles.
JLL arranged the three-year, floating-rate loan. The proceeds will be used to refinance existing debt, cover closing costs, and support future leasing expenses.
The property was previously subject to a $31 million loan in 2020, when the joint venture acquired it as part of a $33.7 million portfolio deal that also included the retail space at 3540 Slauson Ave., according to CommercialEdge data. Wells Fargo Bank provided the five-year note.
Crenshaw Plaza: An In-Depth Look
Completed in 1967 and renovated in 2004,Crenshaw Plaza is a five-building retail center situated at 3210 W. Slauson ave., spanning a 5-acre site. At the time of sale, the property was 97 percent leased, with tenants holding average leases of 9.3 years.
Vallarta Supermarkets serves as the anchor tenant,occupying 31.5 percent of the gross leasable area under a 15-year lease. Other notable tenants include Planet Fitness, foot Locker, and AutoZone.
Crenshaw Plaza is strategically located at the intersection of West Slauson Avenue and Crenshaw Boulevard, where it experiences approximately 72,000 vehicles per day. Additionally, the shopping center is adjacent to the Hyde Park light rail station on the Metro K Line.
JLL Capital Markets Director Spencer Bergthold,Senior Managing Director Charles Halladay,and associate daniel Skerrett led the company’s Debt advisory team that facilitated the deal on behalf of the joint venture.
Grocery-anchored shopping centers have demonstrated remarkable resilience in the market, driven by consistent consumer foot traffic and the demand for convenience-oriented retail experiences. According to recent market trends, the retail sector in 2025 is expected to undergo significant transformation due to shifting consumer preferences, increasingly oriented toward necessity-based centers.
Crenshaw Plaza Secures $32 Million in Senior Financing: Insights from Retail Real Estate Expert, Dr.Jane Richardson
Senior Editor, Sarah Johnson: Today, we have with us Dr. Jane Richardson, a renowned expert in retail real estate. Dr. Richardson, thank you for joining us to discuss the recent financing secured by Crenshaw Plaza in los Angeles. Could you provide an overview of the significance of this development?
Dr. Jane Richardson: thank you for having me, Sarah.Crenshaw Plaza’s securement of $32 million in senior financing is a notable event in the retail real estate sector.This investment not only underscores the continued appeal of grocery-anchored retail centers but also highlights the resilience of such properties in the market. The funding will be instrumental in refinancing existing debt, covering closing costs, and supporting future leasing initiatives.
Sarah Johnson: Could you elaborate on why grocery-anchored retail centers like Crenshaw Plaza continue to attract significant investment despite market fluctuations?
Dr. Jane Richardson: Grocery-anchored retail centers have consistently demonstrated robustness due to the essential nature of grocery shopping. These centers serve as staples in communities, ensuring a constant influx of foot traffic.This inevitability of consumer need translates directly into reliable income streams for investors. Moreover, their positioning as convenience-oriented retail experiences caters well to evolving consumer preferences, notably those focusing on necessity-based shopping.
Sarah Johnson: The property’s 146,901-square-foot size and strategic location seem to play crucial roles in its attractiveness. How do you think these factors influence investors’ decisions?
Dr.Jane Richardson: Indeed,the size and location of Crenshaw Plaza are pivotal in its appeal. A 146,901-square-foot space allows for significant tenant diversification and higher occupancy rates. Moreover, its strategic location at the intersection of West Slauson Avenue and Crenshaw Boulevard, with approximately 72,000 vehicles passing daily, ensures high visibility and accessibility. Couple this with proximity to the Hyde Park light rail station on the Metro K Line, and it becomes clear why investors find this location highly desirable.
Sarah Johnson: Can you discuss the trend of floating-rate loans in the current retail real estate market? How do they differ from fixed-rate loans?
Dr. Jane Richardson: Floating-rate loans have become increasingly popular due to their adaptability in fluctuating economic conditions. Unlike fixed-rate loans, floating-rate loans adjust their interest rates based on a benchmark rate, such as the federal funds rate. This structure can benefit borrowers during periods of decreasing interest rates, offering lower costs. Though, it can also lead to higher expenses during periods of rising rates. Investors frequently enough prefer floating-rate loans for their versatility and potential cost savings over the loan term.
Sarah Johnson: Lastly, what can we expect in the retail sector over the next few years, and how will centers like Crenshaw Plaza adapt?
Dr. Jane Richardson: The retail sector is expected to undergo significant change, driven largely by technological advancements and shifting consumer preferences. Grocery-anchored centers will likely continue to thrive by omnichannel retailing, integrating both physical and digital shopping experiences. Properties like Crenshaw Plaza will adapt through strategic tenant mixes,enhanced customer experience efforts,and sustainability initiatives to stay relevant and viable in the changing market landscape.