One of the largest retail power centers in Silicon Valley recently traded hands for a substantial fee. The Plant retail center was recently acquired by Phoenix-based Cole Credit Property Trust IV for the staggering amount of $205 million. The transaction is one of the largest the real estate investment trust has ever shelled out for an asset.
According to the Phoenix Business Journal, news of the transaction surfaced after Cole Credit filed its 8-K with the Securities and Exchange Commission. A final closing date for the deal is set for March 1.
The Plant is one of the largest properties of its kind in the entire region, offering a total of 650,500 square feet of retail space in the city of San Jose, only 510,000 of which were included in the actual deal. This is a result of the fact that a number of retailers have acquired the space they inhabit at The Plant.
Big names amongst the residents of the power retail center include Best Buy, Home Depot and Target. The facility sports a strong occupancy rate, with only five percent of the available space currently vacant.
Cole Credit Property Trust IV is one of the six real estate investment trusts managed by Cole Real Estate Investments, and this recent purchase represents a landmark buy for the entity—which was also responsible for the acquisition of the Canarsie Plaza in Brooklyn, N.Y. for $124 million in 2012.
According to data provided by Marcus & Millichap Real Estate Investment Services, The Plant’s strong vacancy figures are perfectly in tune with the surrounding area. San Jose has been under the national average when it comes to retail vacancies for a considerable amount of time, illustrating that the demand is well in place for such properties.
For more market data from San Jose, click here.
Chart courtesy of Marcus & Millichap Real Estate Investment Services at marcusmillichap.com