By Jon Peterson
Jacksonville, Fla.-based Regency Centers Corporation plans to break ground next week on the development of 155,000 square foot Persimmon Place shopping center located at the northwest corner of Hacienda Drive and Martinelli Way in Dublin, Calif.[contextly_sidebar id=”ef46c19732d309f7491e0275593e82c2″]The total development cost of this project is $55 million or $354 per square foot. Regency will be funding this entire project with its own capital and is planning a very long-term hold on the property.
“We feel that the demographics of the Dublin market are very strong. There is very strong job growth and a good level of household income,” says Pete Knoedler, senior vice president of investments for Regency. He works out of the company’s regional office in Walnut Creek at 2999 Oak Road.
The trade area for the property includes all of Dublin and part of both Pleasanton and Livermore. The population within the trade area totals 143,000. The average household income is $133,000.
There are three main anchors in this neighborhood shopping center that take up 95,000 square feet in the project. The 40,000 square foot Whole Foods is the grocery anchor of the property. This tenant’s closest store to this property is in San Ramon in Bishop Ranch. Nordstrom Rack will be occupying 35,000 square feet. The other anchor is Homegoods, an affiliate of T.J. Maxx. Its store in the center totals 25,000 square feet. The rest of the center will be made up of restaurants and small shop space.
Persimmon Place will be the first project for Regency in Dublin. “We have been looking for a project in Dublin for the past two to three years. We feel very good about the location that we selected. We think that being located very close to the corporate office for Ross Dress for Less should be a plus,” said Knoedler. The headquarters for Ross is 5130 Hacienda Drive.
Regency Centers considers the San Francisco Bay Area as one of its key target markets. “We are looking for projects in many parts of the Bay Area. This would include the East Bay, South Bay, the Peninsula and San Francisco,” says Knoedler.
The publicly traded REIT only buys and develops shopping centers. It owns a total of 63 properties in California totaling 6.5 million square feet, according to its 2013 results report. These assets make up 23.4 percent of its total gross leasable area for the company. The assets in California are 96.3 percent leased.
Regency Centers owns shopping centers in many markets in the Bay Area. These include East Palo Alto, Redwood City, Sunnyvale, Emeryville, San Jose, Petaluma and Walnut Creek.