$36M Loan On West Covina Shopping Center 90-Plus Days Delinquent
West Covina Village is a 220K SF office and retail property at the intersection of North Azusa and East Rowland avenues.
“The loan financials did not indicate a severe level of stress,” Trepp said, adding that occupancy has regularly been in the low 90% range and information from the servicer indicated that the borrower is working to collect back rent from tenants. The loan first became delinquent in March 2022. Public records show an LLC connected to Hassen Real Estate Partnership as the owner of the retail property.
The retail real estate market in the San Gabriel Valley performed better than the Los Angeles metro area's average in the second quarter of 2022, according to a Marcus & Millichap report. And by Lee & Associates’ count, the vacancy over the last three months was 5%, down from 5.3% in the previous quarter and down from 5.7% at the same time the year before. Rents, however, ticked down.
“The average asking rate dropped nearly $0.50 this quarter and vacancies are beginning to fill up,” the company’s Q2 report noted. The average triple-net asking rent was $24.43 this quarter, down from $24.90 earlier this year.