A private investor out of Mexico City has snapped up the Smart & Final at 3111 E. Florence Ave. in Huntington Park for about $11.4 million, in a deal that closed last Thursday and was brokered by SRS Real Estate Partners. The single-tenant grocery store, completed in 2018, spans roughly 28,000 square feet on about 1.37 acres at a busy Florence Avenue intersection about seven miles south of downtown Los Angeles.
According to Shopping Center Business, SRS handled the transaction and fielded a team of Joe Chichester, John Redfield, and Kyle Zimmer to represent the buyer. The buyer was identified as a private investor based in Mexico City, and the seller as a Los Angeles-based private investor, as detailed in a release from SRS Real Estate Partners.
In that release, SRS reported that the deal closed at a 5.8% going-in cap rate and highlighted the property’s rooftop parking and additional on-site spaces. “We identified this property for our client as a compelling, longstanding investment opportunity,” SRS vice president Joe Chichester said in the statement, noting that grocery-occupied assets remain hot items on investor shopping lists.
Deal specifics
Marketing and listing materials put the freestanding supermarket at roughly 28,000 square feet on about 1.37 acres and confirm the 2018 construction date, according to public property listings. LoopNet notes the signalized corner location on Florence Avenue and nearby freeway access that helps feed steady customer traffic.
Why buyers keep paying for grocery-anchored sites
Industry reports consistently show that grocery-anchored, single-tenant properties keep drawing capital because they offer relatively stable income and reliable foot traffic, even while other corners of the retail world remain choppy. The retail trade group ICSC has tracked grocery-anchored deals in Los Angeles trading in the mid-5 percent cap-rate range, in line with the Huntington Park sale. Recent market coverage from Matthews has reported similar cap-rate levels across the metro LA retail market…