Space Investment Partners, a Corona del Mar-based real estate investment, development and management firm, recently snatched up Topanga Gateway, a 123,402-square-foot grocery-anchored retail center in Woodland Hills for $64 million.

Anchored by Ralphs, the 97% occupied center also hosts The Container Store and Petco.

This acquisition is not a one-off, as Space IP plans to invest up to $1 billion in purchasing these types of retail assets in 2026 with a focus on the Southwest. In July, the firm acquired a nearly 400,000-square-foot grocery-anchored center in Fullerton for $118.5 million.

Ryan Gallagher, managing partner and co-founder at Space IP, sees this asset type as key to the firm’s overall retail strategy.

“We activate and reposition these centers with a synergistic tenant mix of necessity base and fast casual tenants that further drives both sales and traffic,” Gallagher said. “Our firm will continue to look for these opportunities throughout Los Angeles County and the Southwestern U.S.”

‘Proven sales’

Space IP is not the only firm eyeing these centers, with several local trades and financing deals coming through earlier this year. Part of the draw stems from the seemingly recession-immune nature of these centers as the need for groceries and other neighborhood service tenants remain necessary through tough economic times.

For example, grocery-anchored retail centers remained in the 95-97% occupancy range between 2020 and 2025 – even as the bulk of the overall retail industry took a hit amid the Covid-19 pandemic, according to data from Avison Young.

In addition to the draw to the asset type, Space IP pointed to Topanga Gateway’s “drive by traffic of more than 99,000 cars per day” as an attraction in a release.

“We love this center for its location, its affluent consumer base and proven sales,” Gallagher said. “Additionally, the seller did a great job repositioning the center, providing a pathway for escalating rents over time.”