(EDITOR’S NOTE: The cap rate on the $26 million sale was 5.5 percent based on the current income being produced by the asset, according to Mark Thomas, senior vice president with SRS Real Estate Partners in its San Jose office. He represented the buyer in the transaction.
The current occupancy of the center is 95 percent. The buyer, JK Properties, is a private family office that owns shopping center properties in the San Francisco Bay Area and Nevada.)
SRS Real Estate Partners (SRS) is pleased to announce the sale of The Crossings, a 125,000-square-foot shopping center anchored by Safeway and Rite Aid in Antioch, Calif. The property is strategically located near U.S. Highway 4 at the corner of Hillcrest Avenue and Deer Valley Road. The seller was CNA Enterprises of Beverly Hills and the buyer was a partnership controlled by JK Properties of Campbell, Calif.
According to Mike Tantraphol, chief financial officer of CNA Enterprises, the sale was timed to capitalize on investor demand for high performing grocery anchored centers in the Bay Area. The surrounding area has been developed with upscale residential housing and a new Bay Area Rapid Transit (BART) station set to open next year. The new BART station is expected to greatly increase the shopper visits to the center due to the additional traffic count and adjacent Safeway gas station. The center’s new owner will enjoy the benefit of this additional traffic, along with impressive area demographics, an exceptional Safeway and anticipated re-tenanting.
“Our strategy was focused on extending the anchor leases, completing property renovations, and creating an asset that would maximize investor interest,” says Tantraphol. “We are extremely pleased with the collaborative effort amongst the team involved in managing this highly complex sale and assumption transaction,” he added.
Michael Federle, senior vice president with SRS’s San Francisco office represented the seller, a limited partnership managed by CNA Enterprises with whom he as worked with through much of his 35-year career. Mark Thomas, senior vice president with SRS’s San Jose office represented the buyer in his 8th investment transaction with JK Properties. Mark Ritchie of Newmark Realty Capital’s Los Angeles office was the assumption team manager and Alana Miller of Fidelity Title’s South San Jose office managed the escrow process. Mike Tantraphol, chief financial officer of CNA Enterprises managed the transaction for the seller.
About SRS Real Estate Partners
SRS Real Estate Partners is the largest real estate company in North America exclusively dedicated to retail services. Headquartered in Dallas with more than 20 offices worldwide, SRS’ strong reach and international presence provide the company with unparalleled knowledge both globally and domestically. As a result, clients of SRS have a competitive edge through a full range of offerings including brokerage services, corporate services, development services, investment services and management services. Since its inception in 1986, SRS has built a strong foundation in the retail real estate world and grown into one of the industry’s most influential and respected leaders. Our success is measured in the achievement of our clients’ objectives, satisfaction and trust. For more information, please visit www.srsre.com/sfbayarea.