Donahue Schriber Pays $100MM for East Bay Shopping Center

Donahue Schriber Realty Group Alamo Plaza Invesco Real Estate San Francisco HFF Danville Walnut Creek

Alamo Plaza Shopping Center The Registry

By Jon Peterson

Costa Mesa-based Donahue Schriber Realty Group has acquired the 195,147 square foot Alamo Plaza shopping center in Alamo for around $100 million, or just over $512 per square foot.

“One of our main interests in this property is that it’s located in an area that has major barriers to entry. This area is a very tight region for retail. It’s very unlikely that a developer could come in and build a competing property. Our competition is what it is right now,” says Dave Mossman, chief investment officer for Donahue Schriber.

He sees that the property is a core plus investment. “There is strong income being produced by the property now. The asset as its stands currently has some upside. This would be for us lease up the 7 percent of the center that is now vacant. This will likely happen with the addition of a group of local and national tenants,” said Mossman.

The cap rate on the investment was in the range of 4.5 percent. This yield factors in the property’s existing net operating income.

The seller of Alamo Plaza was Atlanta-based Invesco Real Estate. It sold the property through the San Francisco office of HFF. The listing agent was Nicolas Bicardo, a managing director. He did not respond to a phone call seeking comment for this story.

The property was built in 1980. The asset’s main anchor tenant is Safeway. This location for the grocery store is a strong performer well above average. The other main tenants in the property are Rite-Aid, 24 Hour Fitness, Richards Arts and Crafts, Peet’s Coffee and Panera Bread.

The trade area for the property covers two to three miles. In this region there is a population base that totals 50,000 to 55,000 people. This would include residents of Alamo, Danville and Walnut Creek.

Donahue Schriber has two large institutional owners as its financial backers. These are the New York State Teachers Retirement System and J.P. Morgan Asset Management, through its J.P. Morgan Strategic Property Fund.

Donahue Schriber only invests in retail properties. These can be through a combination of core, core plus and development kinds of transactions. The company has been very active in the San Francisco Bay Area over the past couple of years. Besides the deal in Alamo, it has also acquired properties in San Jose and Berkeley.

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