By Jon Peterson
Los Angeles-based CIM Group is continuing with its disposition of major assets in the San Francisco Bay Area with an offering to sell the 509,281 square foot The Plant power shopping center in San Jose, according to sources familiar with the property. This action follows the real estate investment firm bringing to market the Uptown Station office asset in downtown Oakland along with several other across the region.
There has been no pricing guidance set at this time, and the team will be considering the best offers set forth by the potential buyers. The shopping center does have existing financing in the amount of $123 million that must be assumed in the transaction. The asset was redeveloped by Westrust in 2007, when the company spent approximately $149 million to transform the former General Electric factory.
Located at 1 Curtner Ave. in San Jose, The Plant has gone through a couple of ownership changes in the past six years. In 2013, New York-based Vornado Realty Trust sold the property to Cole Capital for $203 million, according to published reports. CIM then became the owner of the property in 2018 as part of its acquisition of Cole Capital.
The listing agent on the sale is the CBRE Capital Markets National Retail Partners West group. People involved in the sale include Philip Voorhees, Jimmy Slusher, James Tyrrell and Matt Kircher.
The power center is leased by several major tenants; the Home Depot is the anchor in the property. This tenant has a lease for 141,021 square feet or 28 percent of the property that does not expire until January 2034. Other major credit tenants in the property include Best Buy, Ross Dress for Less, Off Broadway Shoes, PetSmart, ULTA and Auto Zone. The current occupancy of the property is 75 percent.
The Plant is located in an areas that has strong regional demographics. The population within a three-mile radius of the property is 280,300, and over 710,000 live in an area of five miles with 1.4 million within a radius of 10 miles. The household income is $119,900 for three miles, $126,400 for five miles and $152,200 for 10 miles.
The shopping center is located at the northwest corner of Curtner Avenue and Monterey Road. The asset has the benefit of being in a good retail market. According to the property’s offering document, rent growth in San Jose is currently stabilized at approximately 3.6 percent year over year and continues to be one of the strongest in the country, ranking in the top 20 of all metros nationally.