8000 Sunset Strip:
What qualities make 8000 Sunset Strip a property in which Weingarten Realty would be interested in acquiring?
– 8000 Sunset Strip is a 171,400 sq. ft., Trader Joe’s anchored shopping center located in an extremely dense, high barrier to entry market in Los Angeles; all of which meet our acquisition criteria. The center, located at the intersection of Sunset Blvd and Crescent Heights, boasts traffic counts of 140,000 vehicles passing daily from affluent surrounding neighborhoods including; Beverly Hills, West Hollywood and the Hollywood Hills. At 94% occupied and five levels of subterranean parking, 8000 Sunset Strip has many qualities that exceed Weingarten Realty’s acquisition criteria.
8000 Sunset Strip is a grocery anchored center; does Weingarten Realty consider purchasing any other type of retail centers?
– Weingarten Realty’s portfolio consists of 75% grocery-anchored neighborhood and community shopping centers. However, we also look at well-anchored core plus/value added opportunities.
8000 Sunset Strip is also a mixed-use center including retail and office space; is this a preference which Weingarten Realty would like to model other acquisitions?
– The different uses associated with a center of interest greatly depends on the demographic profile. Density, income levels and % college grads in the area are all important factors in deciding if a particular asset would be a good addition to the Weingarten portfolio. If a particular asset is in a high density urban setting, we would be very interested.
How does the purchase of 8000 Sunset Strip align itself in the positioning of Weingarten Realty as a pure retail REIT and with the long-term acquisition strategy?
– This purchase follows the long-term strategic plan to dispose of lower tier, non-core operating properties in order to seek out select properties, like 8000 Sunset, that meet our return hurdles.
Who will be leasing the remaining retail and office vacancy?
– Rebecca Taylor, Leasing Executive for Weingarten Realty, will handle leasing the remaining approximate 10,000 square feet of vacancy on the ground level.
What makes this center attractive to retailers?
– This premier retail center offers many admirable qualities including an ideal location, great co-tenancy and outstanding demographics. Located at the east end of the Sunset Strip, the intersection marks the connection between Beverly Hills and Hollywood. A highly visible billboard provides great branding opportunities at one of the busiest intersections in Los Angeles County.
The center is anchored by Trader Joe’s, CB2 and Crunch Fitness. Other retailers include: Burke Williams Spa, Salon Republic, Body Factory, DNA Clothing, Sushi Dan, Veggie Grill and Starbucks. Sundance Cinemas, Pei Wei Asian Market and Malibu Fish Grill will be opening soon.
The center’s densely populated, affluent surroundings include a three mile population of 254,795 with an average household income of $86,951. Hollywood and West Hollywood are going through revitalization with over $2.8 billion invested and another $3 billion designated primarily for residential projects, only to enhance the trade area demographics.
Weingarten Realty Acquisition Criteria:
Is Weingarten Realty looking to acquire more properties in the area?
– Weingarten is actively seeking quality opportunities in the Los Angeles that meet our criteria.
Are there other markets in California in which Weingarten Realty is looking to acquire?
– We are looking in LA County, Orange County, San Diego County and Northern California.
When looking at properties to acquire, what is Weingarten Realty’s criteria?
– Weingarten is actively seeking quality opportunities for well-anchored neighborhood and community centers in major metropolitan areas with strong population growth and high barriers to entry. These properties can be core supermarket anchored or core plus/value added opportunities.
What type of properties is Weingarten Realty looking to acquire?
– Weingarten Realty is typically looking for 100,000 plus square feet, multi-tenant properties located at a major intersection of two thoroughfares. We prefer to add value through lease-up, re-merchandising, renovation or additional building.
What makes Weingarten Realty a qualified buyer?
– We strive to maintain a strong, conservative capital structure which provides ready access to a variety of attractive long and short-term capital sources. We carefully balance lower cost, short-term financing with long-term liabilities associated with acquired or developed long-term assets. We maintain an impressive investment grade credit rating and access to public debt and equity markets. The funding from our recent industrial transaction will allow us to strengthen our balance sheet, further enhancing our access to various sources of capital.
What is a typical deal structure for Weingarten Realty?
– The deal structure many times is situational. We will purchase for all cash, leverage, joint venture, DownREIT (tax deferred partnership) or profits participation.
When submitting a property to Weingarten Realty’s Acquisition Team, what information is needed for a preliminary analysis?
– When reviewing properties to acquire, we ask that you submit the price, leasing plan, rent roll, debt information, demographics, TD profit and loss statement and major tenant sales history for three years.
Weingarten is a seasoned REIT with 60 years of experience in leasing, operating and building neighborhood and shopping centers; with an additional 25 plus years actively acquiring shopping centers with over 85% closing rate for all acquisitions under contract. We have a thorough and efficient due diligence team comprised of local personnel knowledgeable of achievable rental rates and the cost of operating assets. Weingarten Realty has a competitive edge in buying due to long standing relationships with investment brokers, owners and retailers.