By Meghan Hall
A shopping center in a well-established part of San Jose has traded hands, expanding the portfolio of a San Diego-based investment firm. In a deal that recently closed, Canyon Creek Plaza was sold for $27.9 million, or about $429 per square foot. The property was acquired by Retail Opportunity Investment Corp.
The deal closed on September 3rd, according to The Mercury News, who first reported the deal. Public records show that the seller of the property is affiliated with Canyon Creek Plaza LP, as well as San Jose-based Twenty Second Century Development.
The shopping center is located at 5645 Silver Creek Valley Rd. and totals about 65,000 square feet. The center is anchored by a New Seasons Market. A site plan for the property shows that other tenants include Mexico Lindo, Comerica Bank, Intero Real Estate Services and Orange Coast Title Company. There are several, 325 square foot vacancies within the property, based on information from the site plan.
“High above south San Jose, the Evergreen Valley/Silver Creek neighborhood is an enclave of high-income households and beautiful homes in both planned and gated communities,” states Retail Opportunity Investment Corps’ website. “The Median household income is over $200,000.”
Retail Opportunity Investment Corp is a qualified for A REIT for income tax purposes, according to the company’s landing page. In its acquisitions, the firm targets stabilized, grocery-anchored centers up and won the west coast. The firm is also interested in acquiring properties with value-add potential, either through repositioning or lease-up and retenanting. As of December 2020, the company’s portfolio included 89 properties–88 retail and one office–totaling 10.1 million square feet of gross leasable area, according to an SEC filing.
“The company believes that the current market environment continues to present opportunities for it to further build its portfolio and add additional necessity-based community and neighborhood shopping centers that meet its investment profile,” documents explain. “The Company’s long-term objective is to prudently build and maintain a diverse portfolio…aimed at providing stockholders with sustainable, long-term growth and value through all economic cycles.”