By Meghan Hall
Stevens Creek Central, a busy shopping center located right off of the Lawrence Expressway and Interstate 280 in San Jose, has traded $95.7 million. The buyer of the property was Weingarten Realty, based in Texas. The transaction was first reported by The Mercury News.
The development totals approximately 59,139 square feet, but sits on a 237,000 square foot lot, and was originally built in 1995. The property is anchored by a Safeway, Marshalls, Cost Plus World Market and Total Wine. Other tenants include Chase and AT&T, Pet Food Express, Starbucks and Panda Express. According to a marketing brochure by CBRE, the property has two availabilities at around 2,895 square feet and 9,811 square feet.
“With excellent access and visibility from Highway 280 and Lawrence Expressway, Stevens Creek Central is an ideal location for both regional and community retailers,” the brokerage firm states in offering documents.
The property also boasts strong retail demographics, with more than 264,000 residents within a three-mile radius, and more than half a million residents within a five-mile radius. The average household income for these populations is also healthy, at around $142,000 annually.
Stephen’s Plaza, another shopping center anchored by Bed, Bath and Beyond, is located just across Stevens Creek Boulevard.
According to public documents, the property last sold in 2009 for $52 million. The previous owner was Boston, Mass.-based AEW Capital Management, a real estate investment firm with 15 offices around the world.
The property’s new owner, Weingarten Realty, is a shopping center owner, manager and developer. At the time of the acquisition of Stevens Creek Central, the company also announced that its 2019 acquisitions to-date total roughly $209 million, while its dispositions total $433 million. Currently, the company owns or operates under lease a total of 170 properties across 17 states, totaling more than 33 million square feet of space. The company confirmed that it did increase its acquisitions guidance to between $175 million to $275 million and stated that it is optimistic for the future.
“We are extremely pleased with execution of our strategy to upgrade the quality of our portfolio as evidenced by the transactions we have closed,” said Drew Alexander, Weingarten Realty’s president and chief executive officer in a statement. “As we move into 2020, we are optimistic that we are well positioned for FFO growth. We see this through NOI acceleration from our development projects and continued acquisitions, coupled with reduced dispositions next year, which should not exceed $150 million. With the quality of our portfolio along with our best-in-class balance sheet, we are well positioned to accelerate this growth into the future.”