Downtown Los Angeles residents hold a special place in their hearts for the local Ralphs at the Market Lofts. More than just a grocery store, for many, it’s been a community hub, a source of nourishment, and a source of libation, plus it was the only grocery store for quite some time before the Downtown Art Walk renaissance of 2010.
If the price of eggs goes up, the parking lot charges too much, or any inconvenience occurs, the residents of downtown LA are the first to let Ralph’s know their concerns, and as our oldest community market, Ralph listens.
Pre-pandemic days brought an in-store sports bar, complete with cheers, conveniently situated between the deli and the fresh fish display.
Offering a unique spot to catch a game or enjoy a drink while running errands, this high-spirited amenity, however, didn’t survive the pandemic, and since, Ralph’s, much like many stores in the downtown area, has been impacted by the rise in homelessness, crime, and theft.
Alcoholic beverages kept behind glass barrier in current day Ralph’s to limit loss from theft. Photo by Pierre Ism.
Despite these challenges, Market Lofts which offers the mixed-use site that houses Ralphs has recently been the subject of a significant real estate transaction.
Hanley Investment Group Real Estate Advisors and SRS Real Estate Partners announced the $20.9 million sale of the 54,948-square-foot ground-floor retail component of the mixed-use Market Lofts development that includes the 49,489-square-foot Ralphs Fresh Fare grocery store and includes six additional tenants: The UPS Store, Supercuts, Simply Salads, Qwench Juice Bar, Honeymee, and Momi Sushi. Although the retail portion has sold, the tenants (including Ralphs) will remain until their individual leases expire or are transferred.
Senior vice president Lee Csenar of Hanley Investment Group and executive vice president Carlos Lopez of SRS Capital Markets represented the seller, MDC Realty Advisors of Denver, Colorado. The buyer was Mushmel Properties of Los Angeles.
“We generated multiple qualified offers from 1031 exchange investors, private family offices, and institutional investors, ultimately selecting a private, all-cash buyer with whom we had previously transacted,” stated Csenar. He further highlighted the efficiency of the deal, noting that “the buyer agreed to a 15-day due diligence period, giving the seller strong confidence in closing.”
Mixed use at its finest
Good Ole Ralphs – George Albert Ralphs (1850 – 1914).
Completed in 2007, the Ralphs at Market Lofts, located at 645 W. 9th Street, holds the distinction of being the first grocery store to open in Downtown Los Angeles since the 1950s. The seven-story mixed-use development, aka Market Lofts, a project of Lee Homes and CIM Group with design by KTGY, features 267 residential lofts spanning six floors above the ground-level retail and the underground parking.
The sale marks a new chapter for the retail component of the Market Lofts, anchored by a grocery chain with a long and storied history. Ralphs, a California institution, has been serving communities since 1873, making it one of the oldest continuously operating grocery brands in the United States. Founded in Los Angeles by George Albert Ralphs, the company began as a small storefront and has grown into a leading subsidiary of The Kroger Co., the nation’s largest traditional grocery store operator. With 187 stores across California, Ralphs remains a significant player in the state’s competitive grocery landscape.
The Market Lofts – photo courtesy Loftway
Carlos Lopez emphasized the strong performance of the grocery anchor, stating, “Ralphs has achieved high sales volumes at Market Lofts as the dominant grocer in Downtown Los Angeles.” He further pointed to the investment appeal of the property, noting that “the project’s full occupancy and grocery-anchored tenancy, along with its long-term income stability, offer a secure investment opportunity in the heart of Downtown Los Angeles.”
Strategically located at the signalized intersections of Flower and 9th Streets and Hope and 9th Streets, the Ralphs at Market Lofts benefits from significant visibility, robust pedestrian traffic, and excellent accessibility. The diverse tenant mix, comprising grocery, restaurant, and service-oriented retailers, is described as offering “100% internet-resistant uses.” The area also benefits from “limited grocer competition,” with Target opening in 2010 and Whole Foods in 2015.
Csenar underscored the unique nature of the offering, stating, “Ralphs at Market Lofts represented a rare opportunity to acquire a fully leased asset anchored by a dominant grocer in the heart of one of the most dynamic urban centers in the country.”
Old Ralph’s Sports Bar – circa 2019
While the sale brings new ownership to the retail spaces of the commercial portion of the Market Lofts, the enduring presence of Ralphs as the anchor tenant offers a sense of stability for the Downtown LA community with long time fans of the grocer waiting patiently at the checkout as well as the return of their beloved sports bar on aisle nine.
