The Californer - Tova Capital Acquires Prominent Freestanding Retail Building in Santa Monica

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SANTA MONICA, Calif. - Californer -- Local real estate investment and development firm Tova Capital, Inc. in joint venture with Shopton Capital has acquired a 7,500-square-foot, free-standing retail building in downtown Santa Monica for $5.5 million.

Originally developed in 1981, the single-story building sits on a 15,000-square-foot corner lot at the signalized intersection of Wilshire and Lincoln Boulevards with exposure to 50,000 drivers per day. The site offers surface parking at 2.4/1,000 and boasts expansive frontage along Wilshire, one of Los Angeles' major thoroughfares stretching from the Pacific Ocean to downtown Los Angeles.

With over 2,300 multifamily units underway and major recent prominent retail lease signings like Fogo de Chao, Din Tai Fung and Google, downtown Santa Monica is currently undergoing a retail resurgence following a difficult leasing environment post COVID, according to Tova Founding Partner Ron Harari.

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"The ability to acquire a free-standing building with surface parking in downtown Santa Monica is rare, especially at such a highly visible signalized corner and at a historically low land basis," said Harari. "While many investors sit on the sidelines as Santa Monica recovers, we are excited to transact on quality real estate at a price that would have been unthinkable just a few years ago. We are actively pursuing similar opportunities throughout Southern California."

At closing, the property was 40% leased to Commercial Bank of California. The Tova-led joint venture plans to make upgrades to the property including new storefront, exterior lighting upgrades, paint and façade enhancements to lease vacancy and stabilize the property.

"We're excited to partner with Tova Capital in the heart of Santa Monica," said Trevor Chang, Principal at Shopton Capital. "In uncertain markets, the best buying opportunities often surface in generational, supply-constrained locations, which can provide pockets of asymmetric upside." Chang added, "We look forward to expanding our partnership with Tova, a trusted and experienced partner, through a rich pipeline of excellent risk-adjusted investments across Southern California."

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Luc Hawkshaw, Eric Mandell and Jeffrey Ahn from Ally Commercial represented Tova Capital in the transaction.

Ryan Gurman at CBRE has been engaged to handle leasing activities.

About Tova Capital
Tova Capital, Inc. (http://www.tovacapital.com) is a Los Angeles-based real estate investment and development company focusing on value-add commercial acquisitions in prime Southern California markets. Founded in 2017, the firm seeks investment opportunities to rehabilitate and reposition older industrial, retail and office buildings, entitle land for higher and better uses and construct ground up development. Tova manages all aspects of the development process including acquisition, construction, financing and disposition.