Retail sites in San Jose, Berkeley and Alamo have been scooped up by an East Coast real estate firm that is using the purchases to launch its initial foray into the West Coast, property records show.
A portion of Village Oaks Shopping Center in South San Jose, a Berkeley retail center at 1000 Gilman St. and Alamo Plaza Shopping Center in the Contra Costa County community of Alamo have been bought by Edens, a South Carolina-based property investment and development firm, according to public records filed in the Bay Area.
The three centers were bought for a combined $293.7 million, public documents that were filed on March 29 show.
The property deals show that real estate investors continue to hunger for an array of commercial properties in the Bay Area, including retail sites, despite the economic uncertainties unleashed by the coronavirus.
Alamo Plaza Shopping Center in Alamo was bought in a $135.5 million deal, according to a filing with the Contra Costa County Recorder’s Office.
Village Oaks retail center at 5670 Cottle Road in San Jose was bought in a $115.1 million transaction, documents filed with the Santa Clara County Recorder’s Office show.
In a $43.1 million deal, Edens bought two Berkeley parcels that include a Whole Foods Market store on Gilman Street, according to records filed in Alameda County.
The seller in all three of the Bay Area retail sites was Orange County-based Donahue Schriber Realty Group, the public property records show.
“Our West Coast expansion is a pivotal milestone for Edens and the next step toward building a pipeline of future opportunities,” Jami Passer, chief investment officer for Edens said in a post on the company’s website.
The company said the West Coast acquisitions mark Edens’ nationwide expansion.
“We have arrived on the West Coast in a meaningful way,” Passer said.
Besides the Bay Area purchases, Edens bought retail centers in the Los Angeles, San Diego and Seattle metro areas.
“This shows the Bay Area retail market is still attracting major investors,” said David Taxin, a partner with Meacham/Oppenheimer, a commercial real estate firm. “The Bay Area has some of the best retail in the whole country.”
The portion of the Village Oaks center that was acquired includes Safeway supermarket, Marshalls department store, Petco, Mod Pizza, Chipotle, Starbucks and Panera. A Target store wasn’t part of the purchase.
The Berkeley purchase includes Whole Foods Market, Office Depot, as well as other merchants on Gilman Street.
Alamo Plaza’s merchants include a Safeway supermarket and a Rite Aid drug store.
Taxin believes that the anchor tenants at all three locations are strong merchants, meaning they are likely to remain in place.
“The quality of the tenants in these centers is what has attracted this investor,” Taxin said. “Investors want stable, long-term investments. Bay Area retail properties deliver that.”