By Jon Peterson
Equity One has paid $30.9 million to acquire the 163,469 square foot Pleasanton Plaza shopping center in Pleasanton located at 5500-5548 Stoneridge Mall Road.
Mark Langer, chief financial officer for Equity One, declined to comment beyond what the company had stated in its 2013 third quarter results report.
The shopping center was 96 percent occupied at the time of the acquisition. The major anchors in the property are a 67,000 square foot JC Penney Home Store, 24,000 square foot OfficeMax and an 18,000 square foot Cost Plus World Market.
The current rents in the property are well below market for both the anchor tenants and the in-line spaces of the property. Equity One stated in its third quarter report that the center’s location makes it highly attractive for future redevelopment, anchor repositioning and expansion opportunities. The trade area is very affluent with average household incomes in excess of $120,000 within a three-mile radius of the property.
The brokerage community agrees with the buyer. “I would think that this property is primed for a redevelopment potential. JC Penney in general terms is having some issues. It’s not clear how the OfficeMax and Office Depot merger will affect the OfficeMax store in Pleasanton. One potential idea might be to create a property with a grocery store concept and maybe some off-price concept like a Nordstrom Rack,” says Dan Wald, a partner with Cassidy Turley Commercial Real Estate Services in its San Francisco office.
Equity One is a shopping center REIT with corporate offices in New York City and North Miami Beach, Fla. The company does have a regional office in Daly City.
The company owns 12 properties in California totaling 2.6 million square feet, according to its Web site. The assets include five properties in the San Francisco Bay Area. These are the 152,452 square Plaza Escuela in Walnut Creek, the 226,642 square foot Potrero Center in San Francisco, the 808,760 Serramonte Center in Daly City and the 224,823 square foot Willows Shopping Center in Concord.