By Jon Peterson
The 35,931 Square foot Mi Pueblo Food Center store in San Rafael is up for sale with the asking price of $12.5 million. The property is located at 330 Bellam Blvd.
The current owner of the property is San Francisco-based Simeon Commercial Properties. The real estate investment firm has hired the San Francisco office of Marcus & Millichap to be the listing agent on the property. Two people involved are Vincent Schwab, senior vice president of investments, and Jeffrey Ida, who is a member of the firm’s national retail group.
The sale of the property is tied to a completion of an investment fund lifespan, and it is driving the decision of the owners to sell the asset. “The current ownership of the property is selling the asset at this time as it’s the last property that Simeon owns in an investment fund that is in a liquidation stage,” says Ida.
The projected cap rate on the sale is 7.5 percent for the month of December 2017. This would be increased to 7.62 percent one year later due to the rental rate increase for the tenant. The annual rental rate increase goes up for the tenant by more than $17,000 over the next 12 months. Mi Pueblo has a lease that expires at the end of 2024.
The property was first built in 1979, and it went through a renovation in 2009. The trade area is projected to have a 2018 population base of 15,063 within one mile, 70,254 in three miles and 138,453 within five miles. The average household income will vary from $95,646 in one mile to $139,105 for five miles.
Mi Pueblo and Cardenas Markets are owned by New York-based KKR Global Investments and Chicago-based Victory Park Capital, according to a statement from the companies. KKR Global Investments purchase into Mi Pueblo and Cardenas, which occurred in fourth quarter of 2016, provides additional capital for numerous upgrades and store remodels to existing locations and allows Cardenas to expand into communities that are currently under served. The company is committed to expanding it’s presence on the West Coast and plans to open seven new Cardenas stores, which will add to the 2017 acquisition of seven other Los Altos Ranch Market stores in the Phoenix area. There are plans to remodel existing stores, starting with Santa Rosa, San Jose, Salinas and Modesto in 2018. Overall, the company owns 53 stores throughout California, Nevada and Arizona employing approximately 3,000 individuals.