Tova Capital Inc., a Los Angeles real estate investment firm, has partnered with Shopton Capital to purchase a 7,500-square-foot retail building in downtown Santa Monica for $5.5 million.
The single-story building, constructed in 1981, sits on a 15,000-square-foot corner lot at the intersection of Wilshire and Lincoln boulevards. The property features surface parking and frontage along Wilshire Boulevard, which connects the Pacific Ocean to downtown Los Angeles.
The acquisition comes as downtown Santa Monica experiences renewed retail activity following pandemic-related challenges. More than 2,300 multifamily units are under construction in the area, and major retailers including Fogo de Chao, Din Tai Fung and Google have recently signed leases.
"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 Ron Harari, Tova's founding partner.
The property was 40% leased to Commercial Bank of California at closing. The joint venture plans improvements including new storefront features, exterior lighting upgrades, paint and façade enhancements to attract tenants and stabilize occupancy.
Trevor Chang, principal at Shopton Capital, said the partnership represents an opportunity in a supply-constrained market. "In uncertain markets, the best buying opportunities often surface in generational, supply-constrained locations, which can provide pockets of asymmetric upside," Chang said.
Ally Commercial's Luc Hawkshaw, Eric Mandell and Jeffrey Ahn represented Tova Capital in the transaction. CBRE's Ryan Gurman will handle leasing activities.
Founded in 2017, Tova Capital focuses on value-add commercial acquisitions in Southern California markets, specializing in rehabilitating and repositioning older industrial, retail and office buildings.
Shopton Capital, established in 2021, targets value-add and opportunistic real estate transactions. The firm's principals have over $3 billion in experience acquiring, developing and operating various property types, primarily in Southern California.
Edited by SMDP Staff