(EDITOR’S NOTE: The sales price on the property was $39 million, and the property was purchased in August according The Registry’s previous reporting. The seller of the property was a joint venture between PGIM Real Estate and Kimco Realty. These two firms had owned the property since 2006. The cap rate on this sale was 4.9 percent according to industry sources. This return is based on the property’s existing net operating income.)
NEWPORT BEACH, December 20, 2019 – JLL announced today that it has arranged $19.6 million in acquisition financing for Fairmont Shopping Center, a 102,982-square-foot, coastal, shopping center anchored by Safeway in the San Francisco Bay Area community of Pacifica, California.
JLL worked on behalf of the borrower, GRI Fairmont, LLC, an affiliate of First Washington Realty, Inc., to place the 10-year, fixed-rate loan with PGIM Real Estate Finance.
Anchored by a high-performing Safeway, the 96%-leased Fairmont Shopping Center is also home to an internet-resistant tenant lineup, including Rite Aid, Dollar Tree, Supercuts, Banfield Pet Hospital, American Sushi House, Starbucks, Southland Nails, Ernie’s Wine & Liquor and Rockway Beach Optometry. Completed in 1966, the retail center was remodeled in 2015 and 2018. Fairmont Shopping Center is situated on 7.46 acres at 705-799 Hickey Boulevard in Pacifica, a coastal community between San Francisco and Half Moon Bay. It is at the high-traffic intersection of Hickey and Skyline Boulevards, where it is visible to approximately 45,860 vehicles per day. Less than half a mile south of the Pacific Coast Highway, the retail center is in a growing trade area with an anticipated population increase of 4.2% over the next five years, and more than 163,953 residents earning an average annual household income of $134,610 live within a three-mile radius of the property.
The JLL Capital Markets team representing the borrower was led by Managing Director Greg Brown, Director John Marshall and Director Bercut Smith.
“JLL was able to negotiate attractive loan terms and found the ideal lender for this asset,” said Daniel Radek, President of First Washington Realty. “The transaction went very smoothly, and we could not be more pleased with the outcome.”
JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm’s in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment advisory, debt placement, equity placement or a recapitalization. The firm has more than 3,700 Capital Markets specialists worldwide with offices in nearly 50 countries.
About First Washington Realty, Inc.
First Washington Realty (FWR) is a fully integrated, national real estate investment and management firm. FWR specializes in the ownership of convenience, necessity and experience-oriented retail real estate. FWR currently owns 104 shopping centers with a value of over $5.5 billion located in 22 states and the District of Columbia. Its centers contain approximately 13.8 million square feet with approximately 2,500 tenants.
JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. Our vision is to reimagine the world of real estate, creating rewarding opportunities and amazing spaces where people can achieve their ambitions. In doing so, we will build a better tomorrow for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $16.3 billion, operations in over 80 countries and a global workforce of nearly 92,000 as of June 30, 2019. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated.