By Meghan Hall
Several retail businesses on Pleasanton’s Main Street have sold—even as uncertainty remains as a result of the coronavirus pandemic. Lafayette-based Branagh Development sold four buildings to KDCI Development for an even $20 million. KDCI is based in Santa Clara and affiliated with local developer Ali Kabali, according to The Mercury News, who first reported the transaction.
The four buildings traded are located at 234, 300, 310 and 349 Main St. Combined, the portfolio includes four buildings, three private parking lots, four parcels and 18 leases. The assets also include 31,243 square feet of gross leasable area and 77,480 square feet of land.
The properties were listed on behalf of Branagh Development by Lockehouse Retail Group’s Adria Giacomelli and Jon Woodcox. According to Lockehouse’s website, the portfolio was initially listed for $21 million., while 349 Main was listed for $8.2 million. Combined, 300-310 were offered at $9.4 million.
234 Main Street is currently 100 percent occupied by two tenants, including Fleet Feet, and includes 4,840 square feet of space. Both tenants have been in the building for over a decade, according to Lockehouse, and the property was initially offered at $3.5 million. NOI for the building comes in at $231,670.
300 and 310 Main Street were offered together, at $9.4 million. The asset was constructed in 1979 and includes 13,741 square feet of rentable area. Five first floor tenants—including Pairings Wine Bar and Restaurant, as well as Patio, another eatery— account for 80 percent of the building’s space. NOI sits at just under $636,000.
“The building sits on over an acre making this a smart investment today and even smarter redevelopment in the future,” states an offering memorandum obtained by The Registry.
349 Main, which includes 12,662 square feet, was offered at $8.2 million. Built in 1997, the property currently has five first floor and six second floor tenants. Tenants include Peet’s Coffee and Prime Poke. Occupancy in the building sits at 91 percent and produces an NOI of just under $475,500.
“Lockehouse is proud to present this rare opportunity to own the most premier building in downtown Pleasanton,” the offering memorandum explains. “Five restaurants occupy the ground floor retail spaces while patrons fill the outdoor courtyard patio, making this the most active corner in downtown. Second floor occupants and customers have access to common area restrooms.”
In the end, KDCI paid $17 million for 300, 310 and 349 Main, and an additional $3 million for 234 Main. The firm also obtained a $13 million loan from First Republic Bank to help finance the transaction.
While many retailers have been hit hard as a result of the pandemic, downtown Pleasanton still boasts strong demographics. More than 153,000 people live within five miles of downtown Pleasanton, and the daytime employee population within the same radius exceeds 92,000. The average household income for those living within the vicinity is about $194,000 per year, while household retail expenditures come in at $4,527. Home values within the area also often exceed $1 million. Combined, they produce strong fundamentals for retailers and retail investors looking for stable opportunities.