What's Happening?
A prominent shopping center in Torrance, California, known as Village Del Amo, has been sold for a record $108.5 million, marking the highest price paid for a retail property in the South Bay area in 2025. The sale reflects a growing interest among real estate investors in neighborhood retail centers that are less affected by the rise of online shopping. The buyers, Emmanuel and Ofelia David, are local investors and nursing home operators from Redondo Beach. They purchased the property from DJM Capital Group, a real estate developer based in Costa Mesa. The shopping center is anchored by the Korean grocer Hannam Chain and BevMo, a major liquor chain, and includes various restaurants, bank branches, and rental offices. The transaction highlights
a shift in investor focus towards retail centers that cater to everyday needs and leisure activities, which are considered 'e-commerce proof.'
Why It's Important?
This sale underscores a significant trend in the real estate market where investors are increasingly targeting retail properties that provide essential services and are less vulnerable to the competition from online shopping. The high price paid for Village Del Amo indicates strong investor confidence in the potential of such properties to deliver stable returns. This trend is particularly relevant in the Los Angeles area, where investment sales of retail properties have surged, reaching over $1.6 billion in the third quarter of 2025. The demand for well-located, grocery-anchored retail centers in affluent markets is expected to continue, driven by their ability to attract consistent foot traffic and provide services that cannot be easily replicated online.
What's Next?
The new owners of Village Del Amo, Emmanuel and Ofelia David, view the acquisition as a long-term investment and plan to enhance the property's success in the coming years. As institutional investors continue to focus on retail centers that serve everyday needs, similar transactions may become more common. This could lead to increased competition for such properties, potentially driving up prices further. Additionally, the demographic appeal of the South Bay area, with its strong income levels and desirable living conditions, is likely to attract more businesses and retail tenants, further boosting the value of local retail properties.
