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First Target Store Planned for L.A.'s Mid-City

CIM Group's Shopping Center Could Revitalize Retail in Neighborhood
August 8, 2018
Rendering courtesy of CIM Group
Rendering courtesy of CIM Group
A new Target store is coming to Los Angeles’ Mid-City, a neighborhood south of the Miracle Mile stretch of Wilshire Boulevard that includes the Los Angeles County Museum of Art and La Brea Tar Pits. It will mark a first for the gentrifying area, which has lacked a strong national retail presence.

The store is planned to open as part of a roughly 87,000-square-foot, two-level shopping plaza that is being built by Los Angeles-based developer CIM Group on the southeast corner of La Brea Avenue and San Vicente Boulevard.

Grocery store Sprouts Farmers Market has also signed on to the project, according to CIM Group, which is still seeking additional tenants for the development.

"I think those are great tenants for that area," Gabe Kadosh, vice president at real estate brokerage Colliers International, said. "There really wasn’t a higher-quality grocer in that area for a long time."

Kadosh said the new shopping complex should also help revitalize commercial activity in the area, historically home to auto body and auto repair shops.

The Target Corp. is not yet providing any specifics as to what type of Target store it will be. The company has its famous big box mega-store as well as smaller store concepts such as CityTarget for denser, urban locations.

This will be the first Target and the first Sprouts Farmers Market in the neighborhood, which Los Angeles City Council President Herb Wesson, who represents the project’s district, says is a big deal.

"This retail center will not only create a new swell of jobs in the area, but will also provide a wanted convenience to all of us in District 10," Wesson said via email. "We are proud to bring Target and the first Sprouts Farmers Market to our part of town, so that we can provide access to more diverse retail options."

The shopping complex, which is slated to include 300 parking spaces in above-ground and underground structures, is scheduled to be completed early next year.

Kadosh also pointed to the success of another nearby CIM Group project, Midtown Crossing, with home improvement store Lowe’s as the anchor tenant there.

CIM Group sold that 315,338-square-foot retail property in February 2015 for $186.6 million, or about $592 per square foot, to NewTower Trust Company, according to CoStar data.
See CoStar COMPS #3236064.

A few miles north of Mid-City, the shell of an unfinished Target store still sits on Sunset Boulevard in East Hollywood.

The store is now involved in legal proceedings after neighborhood groups filed lawsuits alleging the city violated planning rules in approving the project and failed to adequately consider the environmental impact of new zoning laws it created for the site. However, Target remains committed to it.

"We appreciate the city’s continued support for Target in our ongoing efforts to pursue a store in Hollywood on Sunset Boulevard, and we thank the community for its patience as we continue to work toward resuming construction," reads a statement from Target.

There are 102 Target stores in the greater Los Angeles area, and the retailer is always looking for opportunities to expand, according to a Target spokeswoman. Another new Target location is slated to open this fall at 965 Town Center Dr. in La Cañada Flintridge in the San Gabriel Valley.

Where overall retail is concerned, after a supply-driven bump in vacancies at the beginning of last year, strong leasing has helped compress retail vacancies to 3.8 percent near the city's historic low, according to CoStar Market Analytics.



Karen Jordan, Los Angeles Market Reporter  CoStar Group   
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