By Jon Peterson
An affiliate of Texas-based Patterson Ranch Inc., with an entity based in Danville, Calif. is offering up for sale retail properties in Fremont known as the Franciscan and Mohave shopping centers. No pricing guidance was available on the properties at this time.
The seller has chosen JLL to be the listing agent on the sale of the asset. The brokerage team that is working on the sale includes Gleb Lvovich, a managing director, and Daniel Tyner, a senior director with the firm. Both brokers work out of the firm’s Orange County office. JLL declined to comment when contacted for this story.
The property boasts an occupancy of 92.2 percent and net operating income of over $2.5 million. The center was built between 1984 and 1987, according to the properties’ marketing flyer. Tenants in the property include Safeway, Taco Bell, KFC, Burger King, 7-Eleven Market, FedEx Office and Bank of America.
The Franciscan Center is a 106,780-square-foot grocery-anchored shopping center located at 46690-46850 Warm Springs Road. Safeway is the anchor in this property, and it occupies nearly 54,000 square feet in the asset. This tenant has a lease that expires in October 2027. The property has a current occupancy of 94.8 percent and has a total land area of 9.52 acres.
The new owner of the property will have a chance to add some significant value to the property in the future. The part of the property that is vacant had recently been occupied by Walgreens, and this space could be leased to a new tenant.
In addition, three fast food establishments have leases that will expire over the next couple of years and additional value could be created with new leases bringing the rents up to market levels. Burger King has a lease that will expire in January of 2024 with no renewal options remaining. Its current lease is at $84,000, which is well below the estimated market rent of $250,000, according to the flyer. The other two tenants with below-market leases are Taco Bell and KFC.
The Mohave Center is located at 46650 Mohave Drive. This asset is a strip shopping center with a total of 10,228 square feet. It has a current occupancy of 65.2 percent. A main tenant in the property is a 7-Eleven market. It has a lease for 2,560 square feet or 25 percent of the property. The tenant has a lease that runs through April 2031.
The tenants have a strong allegiance to the property. There are over 17 tenants who have been at the shopping centers for more than 10 years, and a big part of that is the asset’s strong demographics. The average household income within three miles of the properties is $171,207; 32 percent of visitors have an annual income over $200,000. 46.7 percent of the customers that visit the properties drive over two miles to get there, with nearly one million estimated total annual visits. In addition, it is projected that the population will experience a 3.11 percent increase within three miles of the properties by 2027.