Terranomics Significant Retail Transactions – July 11, 2012

Petaluma’s New Target-Anchored East Washington Place Lands Several Major Retailers; Dick’s Sporting Goods, TJ Maxx/Homegoods and Sprouts Top the Bill
July 11, 2012 –Matt Kircher, John Schaefer and Katie Singer with Terranomics Retail Services have represented property owner Regency Centers in lease negotiations with several tenants at the new East Washington Place shopping center in Petaluma. The long list of tenants—many national—that have just signed deals at the ±380,000-square-foot Target-anchored center include: Dick’s Sporting Goods (± 50,000 square feet); T.J. Maxx/Homegoods (±46,000 square feet); Sprouts Grocery (± 25,000 square feet); Ulta Salon, Cosmetics & Fragrance (±10,000 square feet); Panera Bread (± 4,200 square feet); Subway ( 1,300 square feet); Sport Clips (1,200 square feet), procured by Singer; and Sift Cupcake & Dessert Bar (1,000 square feet), procured by Trish Gonsalves with Terranomics. Additionally, several other spaces are also currently under negotiations.

Target had purchased 10 acres of vacant land on the site a few months ago and is currently under construction on its new separately owned 140,000-square-foot store, comprised of all indoor space. Kircher had represented Target in the land acquisition.

East Washington Place is strategically positioned at East Washington Street and Highway 101, nearby the city’s future SMART (Sonoma Marin Area Rail Transit) station and current Amtrak bus station. Plans for the new shopping center call for roughly 380,000 square feet of retail and commercial space on almost 34 acres on the former Kenilworth Junior High School site adjacent to Highway 101. Construction began earlier this year on the new East Washington Place shopping center, which is slated for an opening in summer 2013.

The Fresh Market Selects Palo Alto’s To-Be-Remodeled Edgewood Plaza for Second West Coast Location; Takes Over Role as Neighborhood Grocer
July 11, 2012 –Jessica Birmingham and Rhonda Diaz Caldewey with Terranomics Retail Services represented tenant The Fresh Market, Inc. in the lease of 17,118 square feet of space at the Edgewood Plaza in Palo Alto. The property is owned Sand Hill Property Co. This will be just the second location on the West Coast for The Fresh Market. Earlier this year, the specialty grocer announced its first West Coast location will be in Roseville (Sacramento Valley), in a deal also handled by Birmingham and Diaz Caldewey. The Edgewood Plaza is located along Embarcadero Road at Bayshore Road, just off Highway 101. The older Edgewood Plaza recently received city approval for a major redevelopment to include new housing, a rehab of the retail component and a public park that will vastly modernize the project. The Fresh Market will serve as the community’s neighborhood grocer, a role once held by Albertson’s that closed at the center back in 2006.

The Fresh Market’s stores are designed to convey the atmosphere of an old world European market, all under one roof, with an array of departments: an old-style butcher shop and fish market, bakery, produce and floral stands, and delicatessen. Founded in 1982, The Fresh Market, Inc. (NASDAQ: TFM) is a specialty grocery retailer focused on providing high-quality products in a unique and inviting atmosphere with a high level of customer service. The company currently operates 112 stores in 21 states, located in the Southeast, Midwest, Mid-Atlantic, and Northeast, with plans for continued expansion throughout the country. The Fresh Market is an equal opportunity employer. For more information, please visit www.thefreshmarket.com.

Dick’s Sporting Goods Opening New Store at New Fallon Gateway Shopping Center in Dublin, Scheduled for Spring 2013 Opening
July 11, 2012 –Matt Kircher, Patrick McGaughey and Trish Gonsalves with Terranomics Retail Services represented property owner Stanforth Holding Company in the lease of 55,000 square feet of inline space with tenant Dick’s Sporting Goods at the brand new Fallon Gateway Shopping Center in Dublin. Dick’s Sporting Goods signed a long-term lease for its new store and is scheduled to open in spring 2013.

Fallon Gateway is a ±379,053-square-foot Target-anchored shopping center strategically located in the center of the Tri-Valley Trade Area serving Dublin, Pleasanton & Livermore. Target opened to customers in October of 2011 and BJ’s Restaurant & Brewery recently opened in April 2012. Additional sub-anchors and shops are planned for a 2013 delivery and 2014 opening. The fully entitled project sits on 38.43 acres and is located at the North West quadrant of Fallon Road and Interstate 580 where it enjoys unobstructed visibility to Interstate 580.

Dick’s Sporting Goods also recently signed a 50,000-square-foot lease at the new East Washington Place shopping center in Petaluma.

Fitness System Opens New 24-Hour Health Club in West Sacramento
July 11, 2012 –Shaun Morrow with Terranomics Retail Services has represented both tenant, Best Supplement dba Fitness System West Sacramento, and landlord Ramos Trust, in the lease of 24,720 square feet of end cap space in West Sacramento. Fitness System West Sacramento opened its brand new health club located at 2531 Evergreen Avenue earlier this year. Open 24 hours, the club offers includes weights, a cardio room, aerobics room, locker rooms and child care. The same tenant also currently operates a very successful Fitness System club in Lodi.

Buffalo Wild Wings Roaming to The Marketplace at San Ramon, Restaurant Plans for Early 2013 Opening
July 11, 2012 –James Chung with Terranomics Retail Services represented tenant Tee It Up, LLC dba Buffalo Wild Wings Grill & Bar in the new lease of 10,252 square feet of end cap space at The Marketplace at San Ramon shopping center. Buffalo Wild Wings penned a long-term agreement and is scheduled to open in early 2013. The Marketplace is located at Bollinger Canyon Road and Alcosta Boulevard in San Ramon. Buffalo Wild Wings is recognized as one of the Top 10 fastest-growing restaurant chains in the country.

Urgent Care Clinic Buys Building Along Stevens Creek Blvd, Santa Clara for $2.4 Million
July 11, 2012 –Jon Stansbury with Terranomics Retail Services along with Keith Claxton of Cassidy Turley have teamed up to represent seller Samaritan Properties, LLC in the sale of a 5,180-square-foot freestanding retail building along Stevens Creek Boulevard in Santa Clara for $2,382,000 ($459.85 per square foot). The buyer was 4949 Stevens Creek, LLC, which will utilize the property for an urgent care clinic. The property is located at 4949 Stevens Creek Boulevard at the northend of the Stevens Creek Auto Row. It provides close proximity to Lawrence Expressway and Highway 280.

Starbucks Shining in Sacramento Valley, Opening Two New Coffee House Locations
July 11, 2012 –James Teare, SCLS, Blair Wheatley and James Chung with Terranomics Retail Services represented tenant Starbucks in a pair of lease transactions for two new coffee house openings in the Sacramento Valley. Starbucks signed a new lease for a 2,200-square-foot freestanding building at Greenback Square neighborhood shopping center in Citrus Heights. Located at 8027-8085 Greenback Lane, Greenback Square is owned by Inter-Cal Real Estate Corporation. Starbucks also inked a new 1,800-square-foot lease in Granite Bay at 4033 Cavitt Stallman Road, within a freestanding building formerly occupied by Wendy’s that Starbucks will co-tenant with another retailer. The building is owned by Howe-El Camino, LLC. Both transactions from the popular coffee company are long-term leases and commence in November 2012.

Third Workplace Opening First Location at Avalon Village in Walnut Creek; Allows Mobile Workers Access to Open Workspaces and More
July 11, 2012 –Jessica Birmingham and Rhonda Diaz Caldewey with Terranomics Retail Services represented tenant Third Workplace in its lease of 4,442 square feet of inline space at Avalon Village at Contra Costa Centre in Walnut Creek. The property is owned by Avalon Bay Communities. A new company, this will be Third Workplace’s first-ever location.

Third Workplace is a flexible workspace environment that will allow mobile workers access to open workspaces, private offices, and conference rooms with the latest in communications technology and a pool of amenities, including lightning-fast WiFi, modern furniture, video conferencing, printing, high-speed copier, faxing, and coffee/tea/filtered water. The company’s inaugural location is well positioned in a ground floor retail space adjacent to Starbucks and is set in a high-traffic area. The site is also conveniently located nearby BART and Highway 680.

GameStop Relocating to 800 Market Street in San Francisco, Joins Diesel as Co-Tenant
July 11, 2012 –Michael Seigel and Sharon Carmichael with Terranomics Retail Services represented tenant GameStop, Inc. in the lease of 4,630 square feet of inline retail space on the ground floor of 800 Market Street in San Francisco. GameStop, the world’s largest multichannel video game retailer with a network that includes 6,614 stores worldwide, is relocating its Powell Street store, with plans to take occupancy at its new San Francisco flagship location on Market Street in September. The gaming company will join Diesel as a co-tenant in the mixed-use building, known as the California Savings Building, composed of office over street-level retail and owned by INVESCO Real Estate. GameStop’s new space is positioned two blocks from Union Square and the Moscone Center. GameStop currently has three other locations in San Francisco.

GNC Supplementing Silicon Valley Locations with New Store at Rivermark Village in Santa Clara
July 11, 2012 –Katie Singer with Terranomics Retail Services represented tenant GNC in the new lease of 1,546 square feet of inline space at the Safeway-anchored Rivermark Village shopping center in Santa Clara. The property is located on Rivermark Plaza, just off of Montague Expressway between North First and Lafayette streets. GNC is scheduled to open its new Rivermark store this summer. Per its web site, this will be GNC’s second location in the city of Santa Clara and its 29th overall in the Silicon Valley. GNC is a leading global specialty retailer of health and wellness products, including vitamins, minerals and herbal supplement products, sports nutrition products and diet products.

Starbucks to Open First Café Location in Carmel, Fills Former Black Bear Diner Space
July 11, 2012 –Tina Essegian with Terranomics Retail Services represented Starbucks in the new lease of a 4,000-square-foot freestanding retail building in the City of Carmel. This will be Starbucks’ first café location in Carmel. The property is located at 3650 Rio Road, just off Highway 1 (Cabrillo Highway) and formerly housed the highly-visible Black Bear Diner restaurant. The property is owned by Carmel Properties Company. Starbuck’s new café is well positioned adjacent to The Crossroads Shopping Village, which is anchored by Safeway, CVS Pharmacy, Rio Grill and Pet Food Express.

Woodland Crossroads Center Celebrates 100% Occupancy with Addition of Party City
July 11, 2012 –Shaun Morrow with Terranomics Retail Services represented landlord W.C. Investors, LLC in the lease of 12,712 square feet of inline space at The Woodland Crossroads shopping center to Party City, a new tenant in the project. Party City recently opened at the center a few months ago, bringing the center to 100% occupancy. Located in the city of Woodland at East Main Street and Matmor Road, Woodland Crossroads is a major remodel of a former K-Mart property along the city’s major commercial corridor. Other key tenants in the center include Ross, Office Depot, Tractor Supply Co. and Grocery Outlet. Woodland Crossroads is also positioned nearby major retailers such as Wal-Mart, Costco, Target, Pet Extreme, Home Depot, Staples & Food 4 Less.

Terranomics provides this information based on best-available knowledge and does not warrant accuracy provided us by 3rd parties. For further verification and/or questions, please contact the brokers listed below with the particular news announcement.

Primary Contacts (names are listed alphabetically):
Jessica Birmingham, (916) 617-4264, jbirmingham@terranomics.com
James Chung, (408) 436-3630, jchung@terranomics.com
James Teare, SCLS, (916) 329-1548, jteare@terranomics.com
Jon Stansbury, (408) 436-3652, jstansbury@terranomics.com
Katie Singer, (650) 931-2230, ksinger@terranomics.com
Matt Kircher, (650) 347-3700, mkircher@terranomics.com
Michael Seigel, (408) 931-2227, mseigel@terranomics.com
Shaun Morrow, (916) 617-4242, smorrow@terranomics.com
Tina Essegian, (415) 931-2226, tessegian@terranomics.com
Trish Gonsalves, (925) 627-2895, tgonsalves@terranomics.com

For market statistics or data, please contact:
Garrick Brown, Director of Research, (916) 329-1558, gbrown@terranomics.com

About Terranomics
Terranomics is the dominant retail brokerage firm in Northern California. Terranomics currently has over 30 retail brokers leasing over 20 million square feet of retail property in Northern California and exclusively represents over 100 national and regional tenants. Terranomics has transacted over $3.3 billion in retail investment sales over the last five years. For 40 years, Terranomics has been actively involved in almost every development site and tenant roll-out in the region. Terranomics is the Northern California affiliate of Chain Links Retail Advisors. www.terranomics.com

West Coast Commercial Real Estate News