Bay Area Family Office Spends $16MM on Hercules Retail Center

Bay Area, Hercules, Dublin, Hercules Retail Center, ORB Partnership, Dosanjh family

By Jon Peterson

One group of investors in the market today has been actively looking at strong locations across the region’s suburban markets. A Dublin, California-based family office associated with the Dosanjh family has acquired the 20,427 square-foot shopping center in Hercules called the Hercules Retail Center, which is located at 3600 San Pablo Avenue. The purchase price was $16 million, or roughly $783 per square foot, according to public records reviewed by The Registry. It is just another example of family offices looking to acquire solid revenue-producing real estate in a market that has seen a slowdown across all sectors.

The previous owner of the property was a Miami, Florida-based ORB Partnership, which placed the property on the market earlier this year with a $16.5 million asking price, according to the property’s offering document. The listing agent the marketing efforts for the property was Jay Gomez, a retail specialist with CBRE. He co-heads the retail investment team with James Kaye in the San Jose office. CBRE did not respond to a phone call seeking comment for this story.

At the time of the sale, the property was 94.3 percent occupied. It has a solid mix of local and national in-line shop tenants. Some of its tenants include Starbucks, Kinder’s Meat Market, InSight Optometry and Pizza Twist. The property also has a Jack in the Box restaurant on its tenant roll and a Shell Gas station; both are on separate parcels. This could allow the new owner an opportunity to spin off those parcels separately after buying the property as a way to recoup part of its initial investment.

The asset was first developed in 1999. It is located on a parcel that totals 3.81 acres. The property also includes plenty of parking available for its customers and is located in close proximity to the I-80 Freeway, which counts daily traffic that exceeds 270,000 vehicles.

The Hercules Retail Center also benefits from its adjacency to a newly developed grocery-anchored shopping center. This is a property with a newly-developed Safeway store as its anchor tenant. Other businesses in the property include Chase Bank, Peet’s Coffee and a Safeway gas station.

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