West Hive Capital has successfully completed the sale of the Western Plaza retail center in Rancho Palos Verdes, California, for $24.5 million. This transaction marks a significant achievement for the firm, which acquired the property in 2024 for just $8.4 million. The impressive value increase of approximately 191% reflects extensive renovations and strategic repositioning efforts undertaken by the company.
The 28,190-square-foot neighborhood retail center underwent a comprehensive renovation program. Key improvements included a complete modernization of the exterior façade, upgrades to building systems, and enhancements to site and parking facilities. Notably, a new 4,000-square-foot outdoor dining plaza was added, designed to support food and beverage tenants within the center.
Kyle Gorman, co-founder and general partner of West Hive Capital, emphasized the importance of meaningful improvements. “We felt the only way to do it right was to improve the things that actually mattered, like upgrading utilities and parking, instead of just putting lipstick on it,” he stated. Gorman expressed pride in the project, which he believes showcases West Hive Capital’s capabilities and sets a standard for future redevelopments.
Strategic Tenant Mix Enhances Value
A critical aspect of the success of Western Plaza was the re-merchandising of the tenant mix. West Hive Capital focused on aligning the retail offerings with the daily needs and preferences of the local community. New tenants include well-known brands such as O’Reilly Auto Parts, The Habit Burger Grill, Urbane Café, and Mattress Firm, alongside local favorites like Piccinni Italian and Ko-Ryu Ramen.
Brandon Lehman, co-founder and general partner of West Hive Capital, commented on the company’s investment strategy. “Western Plaza is a clear example of our approach to retail investment. We target well-located centers and drive value through thoughtful capital investment and focused leasing efforts that serve the surrounding community,” he explained. This strategy has resonated strongly with both private and institutional investors.
As for the sale itself, West Hive Capital was represented by Jeff Lefko of Hanley Investment Group, while the buyer, Aria Investments, was represented by Sheila Alimadadian of Marcus & Millichap. The deal not only highlights the potential for value creation in retail properties but also serves as a testament to the effective strategies employed by West Hive Capital in revitalizing underperforming assets.
The successful sale of Western Plaza is a significant milestone for West Hive Capital, demonstrating their commitment to enhancing community-focused retail environments while achieving substantial financial returns.