NewMark Merrill Building Retail Center: The Los Angeles Deal Sheet

Why It Matters

The new retail phase expands suburban shopping options and demonstrates strong tenant demand, while the surrounding transactions highlight robust investment activity across multifamily, industrial, media and office sectors in Southern California.

Key Takeaways

• Desert Sky Plaza II 70% leased before construction
• Target and Burlington anchor Victorville retail expansion
• Golden Sands Apartments sold for $21 M
• Burbank industrial property fetched $15 M
• Lincoln Property leases 65K SF to health brands

Pulse Analysis

The entitlement of Desert Sky Plaza II underscores a broader shift toward suburban retail development, especially in growth corridors like Victorville. Anchor tenants such as Target and Burlington provide the foot traffic needed to attract smaller retailers, and the 70% pre‑commitment rate signals confidence in consumer demand despite a competitive national retail landscape. Developers are leveraging the 30‑acre site to create a mixed‑use environment that can adapt to evolving shopping habits, positioning the project as a catalyst for further economic activity in the High Desert region.

Beyond the flagship retail project, Southern California’s real‑estate market continues to see diversified capital flows. The $21 M acquisition of Golden Sands Apartments reflects sustained interest in affordable multifamily housing, while the $15 M sale of a fully occupied Burbank industrial building highlights the premium placed on flexible warehouse‑office hybrids near emerging mixed‑use campuses. Interwoven Studios’ $5.25 M purchase of a soundstage adds to the media‑production boom in the Hollywood Media District, and the undisclosed Carlsbad office campus deal signals confidence in high‑tech and R&D tenancy despite broader office‑space uncertainties.

Leasing activity further illustrates market resilience. Lincoln Property Co.’s recent 65,000 sq ft lease to health‑focused brands Figs and O‑Positiv at Santa Monica Gateway demonstrates that premium office locations remain attractive to niche, high‑growth tenants. Such agreements not only boost occupancy rates but also diversify the tenant mix, reducing reliance on traditional corporate users. Collectively, these transactions suggest a balanced investment environment where retail, industrial, residential, and office assets each find robust demand, reinforcing Southern California’s status as a dynamic hub for real‑estate capital.