By Jon Peterson
Excelsior, Minn.-based Oppidan Investment Company has placed on the market for sale the ground lease for the University Village retail center located at 1075-1090 Monroe Street in Albany, Calif., a city just north of Berkeley. The potential sales price on the property is $21 million, according to sources familiar with the sale of the property.
The seller has hired the CBRE National Retail Partners West team as the listing agent on the sale. The people involved on the sale are Philip Voorhees, Kirk Brummer, James Tyrell and Matt Kircher, who is a local representative in San Francisco.
The ground lease on the property lasts for more than 72 years, and the land is owned by the University of California at Berkeley. The ground lease has fixed 10 percent increases every five years starting 2027.
If the potential sales price is reached, the transaction would then produce a cap rate of 5.6 percent, according to an offering document. This yield would be based on a one-year net operating income of $1.2 million. The projected three-year NOI is $1.29 million, which would increase the cap rate to 5.97 percent.
The total square footage of the shopping center is 44,611 square feet, and the anchor tenant in the property is Sprouts grocery store. This tenant occupies 28,684 square feet of the property. It has a lease that was started in May 2017 and expires in April 2032 and also includes two five-year options. Other tenants in the 100 percent leased property include Pet Food Express, Habit Burger and Starbucks.
The property has strong market demographics. There is a total of 30,000 people living within a one-mile radius and 177,600 within three miles of the shopping center. Average household income is exceeding $152,324 for a one-mile and $129,490 for a three-mile radius.