JLL Capital Markets closed the sale of the value-add retail center in the growing and affluent Elk Grove community
According to industry sources, the property is now 90 percent occupied and there are three retail spaces that could bring the tenancy to 100 percent full.
Rob Holuba, managing director with CenterSquare, said, “We consider this property to be an essential service retail property. This is where customers have to actually drive to the property to take advantage of the services and we feel that this type of retail has shown strong performance in many markets across the country. The property in Elk Grove, while being our first retail acquisition in Sacramento, is our 30th ESR asset we own nationwide. There are now a total of 450 tenants in these types of properties in our portfolio. The investment in Waterman Grove Plaza was an investment made on behalf of a joint venture we have with an institutional equity partner.” He declined to name the equity partner.)
SAN FRANCISCO, Calif., May 12, 2022 – JLL Capital Markets announced today that it has closed the $17.25 million sale of Waterman Grove Plaza, a 44,090-square-foot, value-add retail strip center in the growing Sacramento-area community of Elk Grove, California.
JLL marketed the property on behalf of the seller, Pacific Castle Management, Inc. CenterSquare Investment Management acquired the asset.
The 89.2-percent-leased Waterman Grove Plaza houses a diverse mix of internet-resistant, national and regional quick-service restaurants, fitness, personal care and service tenants such as Pets To Go, Panda Express, Jamba Juice, Mountain Mike’s Pizza, 9Round, Subway and Envy Day Spa.
Positioned on 4.17 acres at 9304-9332 Elk Grove Blvd., Waterman Grove Plaza is at the intersection of Elk Grove Boulevard and Waterman Road in Elk Grove, a growing community 14 miles southeast of Sacramento. The area immediately surrounding the center is experiencing a boom in multi-housing development to support the growing and affluent residence base that includes 81,001 residents earning an average household income nearing $118,000 within a three-mile radius. Considered one of the largest growth markets in the country, the population has increased by an impressive 18.5 percent since 2010 and is showing no signs of slowing down.
The JLL Retail Capital Markets Investment Sales and Advisory team representing the seller was led by Eric Kathrein, Gleb Lvovich, Bryan Ley and Warren McClean.
“We saw very strong interest during the sale process and received multiple full-priced offers in the first week of hitting the market,” Kathrein said. “The investment market has a very strong appetite with a lot of capital chasing well-located retail centers with daily needs, service and restaurant tenants.”
JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm’s in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment and sales advisory, debt advisory, equity advisory or a recapitalization. The firm has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.
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Jones Lang LaSalle Americas, Inc. (“JLL”) is a real estate broker licensed with the California Department of Real Estate, license #01223413.
About Pacific Castle Management, Inc.
Headquartered in Irvine, California, Pacific Castle Management, Inc. is a commercial real estate investment and operating company focused on acquiring and operating, leasing and managing (value-add) retail properties primarily in California and surrounding states.
About CenterSquare Investment Management
CenterSquare is a global investment manager focused on actively managed real estate, private equity real estate and private real estate debt strategies. As specialists in real assets, CenterSquare executes investment strategies designed to enhance the performance and resiliency of our clients’ investment portfolios. CenterSquare’s management team holds an average of 30+ years of experience, with expertise across real assets and the liquidity spectrum.
CenterSquare is proudly management-owned and is headquartered in Philadelphia with affiliate offices in New York, Los Angeles, London and Singapore. As of March 31, 2022, CenterSquare and its subsidiaries manages approximately $15.2 billion in assets on behalf of some of the world’s most well-known institutional and private investors.
JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. JLL shapes the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, amazing spaces and sustainable real estate solutions for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $19.4 billion, operations in over 80 countries and a global workforce of more than 100,000 as of March 31, 2022. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated.