Los Angeles-area Kohl’s sells for $22 million

Irvine, Calif. -- Hanley Investment Group announced that Ed Hanley, Kevin Fryman and Eric Wohl negotiated the sale of an 88,000-sq.-ft. Kohl's Department Store, located in the Los Angeles area. The single-tenant triple-net leased property sold for $21,950,000, representing a historic national record-breaking low cap rate of 4.80%. 





"According to our CoStar research, this sale represented the all-time lowest cap rate ever for a single-tenant Kohl's in the U.S.," said Hanley, president of Hanley Investment Group. "The previous record-holder was for a Kohl's in Redondo Beach, California, that sold in November 2013, and the cap rate for this Kohl's sale beat out the Redondo Beach record low cap rate by more than 50 basis points."



Hanley also added that this Kohl's transaction represented the lowest cap rate for a single-tenant transaction over $20 million located in a non-urban setting. According to Hanley Investment Group's senior VP Kevin Fryman, Kohl's had 14 years remaining on the initial term with strong increases and options to extend.



The buyer was a private northern California 1031 Exchange investor. The seller was a Los Angeles-based private investor.