By Meghan Hall
Peninsula Land Capital has closed on two deals, adding retail to its portfolio. At the beginning of May, the Palo Alto, Calif.-based private investment and commercial real estate firm bought 2485 E. Charleston and 2555 E. Charleston Rd. for a combined $30 million, according to public property documents.
The larger of the two buildings at 2555 E. Charleston. Peninsula Land Capital paid $24 million, or about $538 per square foot for the asset, which was sold by Saab CA LLC, associated with The Russ Group, Inc. The firm specializes in management as well as acquisition and brokerage services for major retailers including DSW, OfficeMax and SuperValu and Albertsons. The firm currently owns and manages 15 properties in eight states, consisting of 3.5 million square feet, according to its website. The 2555 E. Charleston property totals 44,602 square feet. Saab CA LLC purchased the asset back in 2013 and paid $7.5 million, or about $168 per square foot. The property is currently an ACE Hardware Store.
The second property at 2485 E. Charleston is smaller, totaling 15,095 square feet. Peninsula Land Capital acquired the asset for $6.8 million, or about $450 per square foot. The seller of the property is Video Only Inc., who also occupies the space. The property last sold in 2010 for $2.1 million, or $139 per square foot.
The two properties are in a central part of Mountain View, minutes from the Googleplex and two shopping centers anchored by Costco, Best Buy and REI. The Shoreline Amphitheater, as well as Intuit and SSL are also nearby.
All eyes are on the retail sector, which as of late has struggled due to the pandemic. Prior to COVID-19, historically low unemployment rates and consumers with ample discretionary income continued to buoy retailers throughout Northern California. Shuttered retailers due to health concerns and rising unemployment rates—more than five million Californians have filed for unemployment—continue to undermine retail fundamentals.
As of this writing, Peninsula Land Capital had not yet returned The Registry’s request for comment.