(Target, Clay Grubb, Google Maps)
Koreatown is getting a new Target.
Target signed a 15-year lease to take up a commercial portion of Grubb Properties’ multifamily development at 1000 South Vermont Avenue, according to a lease memorandum filed with L.A. County last month.
The general merchandise and grocery retailer has options to extend its lease for an additional 19 years and 11 months, according to the memorandum.
In a February investment note, Grubb Properties said it had “secured a grocery tenant with national credit” for a 48,000-square-foot, ground floor commercial space at the property. The company did not respond to a request for comment.
Charlotte-based Grubb Properties is currently building a 323-unit complex on the corner of Vermont Avenue and Berendo Street, which is expected to open in the second quarter of 2024. The development will be named under the firm’s Link Apartments brand.
Grubb bought the property for $20 million in February, records show, from supermarket Hannam Chain USA, which had scored entitlements for the project.
The entire property is set to cost at least $227 million, according to the February investment note obtained by TRD.
Koreatown is already home to one Target at 620 South Virgil Avenue.
Target’s sales have shot up over the last two years, as its stores were deemed essential during the onset of the pandemic. The firm’s total revenue grew 21 percent year-on-year to $28.3 billion in the fourth quarter of 2020, compared to 2019. Sales also increased 20 percent to $92.1 billion in 2020, compared to $77.1 billion the year prior.
However, the firm’s sales have started to slow, as inflation has affected consumers across the country — in the second quarter of this year, sales grew 2.6 percent from the first quarter. Operating income also dropped to $321 million in the second quarter of this year, from a record $2.5 billion in the second quarter of 2021.
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