By Meghan Hall
A retail center in one of San Jose’s emerging hubs has sold after nearly nine years of ownership. In a transaction that closed recently, Los Angeles-based American Realty Advisors sold the @First Retail Center in North San Jose for $54.5 million. The buyer is LaSalle Investment Management.
The Silicon Valley Business Journal was the first to report on the transaction. The property is located at 4130 N. 1st Street and includes 10.3 acres, as well as 84,001 square feet of rentable area. Tenants include popular eateries such as Panda Express, Chipotle and Chick-fil-A, and is also anchored by a CVS and El Camino Healthcare center.
American Realty Advisors has owned the asset since 2012, when it purchased the property from the developer, Cupertino-based Hunter Properties. The Target located just adjacent to the center–which totals about 145,000 square feet and was also developed by Hunter Properties–was not included in either the 2012 transaction or the most recent deal.
In recent years, North San Jose has become a hub for expanding firms who are looking for amenities in a less-dense setting. NXP Semiconductor, CDK Global, Molecular Devices and Lumentum all have offices in the area, while development also continues to take shape. In April, Bridge Development filed plans for a 700,000 square foot office complex, while over the past year, ProspectHill Group, SKS Partners and Invesco Real Estate have been formalizing plans for Phase II of Assembly at North First, a 1.3 million square foot office campus.
North San Jose retail activity over the past year has also remained relatively stable, according to analyses released by Cushman & Wakefield. In the Milpitas and North San Jose submarkets, vacancy for retail spaces sat at 4.8 percent, one of the lowest in the Bay Area and the second lowest in Silicon Valley overall. Asking rents also held steady, at $39.22 per square foot triple net. While activity remains slow, the retail market is picking up as the unemployment rate gradually declines and other fundamentals improve.