West Hive Capital has successfully finalized 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 191% increase in value reflects a comprehensive renovation strategy that revitalized the center.
The retail center, encompassing 28,190 square feet, underwent extensive improvements during West Hive Capital’s ownership. The renovation included a complete exterior facade modernization, upgrades to building systems, and enhancements to the site and parking areas. Notably, a new 4,000-square-foot outdoor dining plaza was added to attract food and beverage tenants, contributing to the overall appeal of the shopping destination.
Kyle Gorman, co-founder and general partner of West Hive Capital, emphasized the firm’s commitment to 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,” Gorman stated. He added that the project reflects the firm’s capabilities and the standards they intend to uphold in future redevelopments.
Strategic Tenant Mix and Community Focus
A critical aspect of the redevelopment involved re-merchandising the tenant mix to better align with the daily needs of the local community. New tenants secured during this process include O’Reilly Auto Parts, The Habit Burger Grill, Urbane Café, Mattress Firm, Pacific Dental, Piccinni Italian, Alibaba Mediterranean, Pure Bean Coffee, and Ko-Ryu Ramen, a locally owned restaurant concept. These changes contributed to the property reaching full stabilization at the time of sale.
Brandon Lehman, co-founder and general partner of West Hive Capital, remarked, “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.” Lehman noted that this strategy resonates well with both private and institutional investors.
The sale was facilitated by Jeff Lefko of Hanley Investment Group, who represented West Hive Capital, while Sheila Alimadadian of Marcus & Millichap represented the buyer, Aria Investments.
This transaction highlights the growing trend of revitalizing underperforming retail spaces through strategic investment and community-focused tenant placements. As retail landscapes evolve, the success of West Hive Capital in transforming Western Plaza serves as a notable case study in effective property redevelopment.
