Shopping Center in Walnut Creek on the Market with $18.6MM Price Tag

Office Max, Goodwill Industries, Shane Co., Fine Floorz, CBRE, Walnut Creek, East Bay, M&J Wilkow

By Jon Peterson

The commercial real estate market around Walnut Creek continues to heat up. A 52,797 square foot shopping center located at 2500-2540 North Main Street in the East Bay city that is up for sale with an offering price of $18.6 million, according to sources familiar with the property, is just one asset that may soon change hands along with a slew of others.

The owner of the property, a Chicago-based real estate investor M&J Wilkow, has engaged with CBRE to oversee the sale of the asset. Those involved in the sale include Andrew Reeder, vice president, who works out of the firm’s San Francisco office, John Read, first vice president, and James Tyrrell, associate. Read and Tyrrell work in the Newport Beach office for the company. CBRE declined to comment when contacted for this story.

The sale of the property is projected to produce a 6.5 percent cap rate. This yield is based on the property’s current net operating income. A likely type of buyer for the property would be an investor with a 1031 Exchange requirement, according to some estimates.

The shopping center has a mix of national and local tenants that occupy the space in the property. These include Office Max, Goodwill Industries, Shane Co. and Fine Floorz. The property was first developed in 2000, and the current occupancy is at 96 percent.

All of the tenants in the property have leases of at least five years. Office Max has renewed its lease two years early for the next 12 years. Shane Company has also extended its lease for the next seven years two years earlier. Goodwill will be in the property for the next 10 years, and Fine Floorz has a five-year lease.

The shopping center has strong regional demographics. Within a seven-mile radius of the property, there is a population base of more than 369,700 people with an average household income exceeding $133,200. The asset also benefits from its location in a tight retail market, which has a current vacancy under 2 percent. This is likely to remain the case for some time since there is no vacant land available for new development.

West Coast Commercial Real Estate News