SITE Centers Pays $103MM for Two Lafayette Retail Properties

La Fiesta Square Lafayette Mercantile SITE Centers Newmark Cortese Properties

(EDITOR’S NOTE: According to public documents, the two centers, located at 3589-3599 Mt. Diablo Blvd. and 977 Moraga Rd., were sold for $42,576,000 and $60,652,500, respectively. The buyer is Beachwood, OH-based SITE Centers Corp. The seller was an entity associated with Cortese Properties.)

San Francisco, CA (May 11, 2022) — Newmark announces it has completed the sale of the Lafayette Portfolio comprised of La Fiesta Square, a 3.86-acre open air, convenience-oriented, lifestyle center encompassing an entire city block, and Lafayette Mercantile, a 56,614-square-foot retail mixed-use asset. Both projects are located in the city of Lafayette, California. The portfolio traded from the seller, an undisclosed private investor, to the buyer, an institutional investment group. Newmark Vice Chairman and Head of Retail Capital Markets for Northern California Nicholas Bicardo and Executive Vice Chairman and President, Western Region Capital Markets Steven Golubchik represented the seller in the transactions.

“This portfolio represented a once-in-a-generation opportunity to gain immediate scale through acquiring the dominant retail asset and best mixed-use property two blocks apart from each other in one of the Bay Area’s most affluent neighborhoods,” said Bicardo. “As a result, we received significant investor interest from all sources of capital including institutional and private.” 

La Fiesta Square totals 74,295 square feet across five retail buildings on a 3.86-acre assemblage in the heart of downtown Lafayette. The property represents one of the largest Main Street assemblages in the San Francisco Bay area. It is located just two blocks from the Lafayette BART Station, providing easy connectivity by car, foot, bike or public transportation. 

Lafayette Mercantile is a 56,614-square-foot, best-in-class retail and office project that boasts covered parking with marquee ground-floor retail, offering residents and employees upscale food, beverage and retail services. The second and third floors consist of modern, Class A office space occupied by a mix of professional services firms. The property is conveniently located just a 3-minute walk to a BART station, providing tenants and customers with both public and private transportation options. 

The properties benefit from being located immediately adjacent to Highway 24, the major east-west thoroughfare connecting San Francisco and Oakland to Walnut Creek and linking to I-80, I-580, I-880, I-680 and the greater Bay Area. The accessibility and convenience make Lafayette a coveted location for San Francisco Bay Area executives to reside. This has created a niche for retail and office users looking to cater to the surrounding community. The area also has some of the highest rated public schools in the state, driving demand from younger families moving to the area.

About Newmark 

Newmark Group, Inc. (Nasdaq: NMRK), together with its subsidiaries (“Newmark”), is a world leader in commercial real estate, seamlessly powering every phase of the property life cycle. Newmark’s comprehensive suite of services and products is uniquely tailored to each client, from owners to occupiers, investors to founders, and startups to blue-chip companies. Combining the platform’s global reach with market intelligence in both established and emerging property markets, Newmark provides superior service to clients across the industry spectrum. Newmark generated revenues of nearly $3.1 billion for the twelve months ending March 31, 2022. Newmark’s company-owned offices, together with its business partners, operate from approximately 170 offices with 6,300 professionals around the world. To learn more, visit nmrk.com or follow @newmark.

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