The Santa Teresa Village Shopping Center in San Jose recently traded hands in one of the largest transactions involving neighborhood shopping centers in the Bay Area this year. Maryland-based Retail Opportunity Investments Corp. was the buyer, while the former owner is Santa Teresa Village LLC—an entity created by local contractor Barry Swenson Builder. The value of the transaction was a reported $31.6 million, according to the San Jose Business Journal.
Santa Teresa Village Shopping Center is a 124,792-square-foot retail property currently anchored by a Nob Hill Foods and Ace Hardware. The shopping venue has a low vacancy rate of around five percent.
Cassidy Turley, along with Kidder Matthews representatives, arranged the transaction on the buyer’s behalf, while the seller was advised by Prime Commercial. The per-square-foot rate that Retail Opportunity Corp. paid for the complex is approximately $250. The Maryland REIT’s offer immediately convinced Barry Swenson Builder executives to finalize the sale.
The San Jose area is set to benefit from the housing market’s recovery, as this will have immediate effects in the demand for retail space. The deal in question is a perfect example of new investors being attracted to the commercial market in order to make sure that they can be part of the upward trend.
Retail Opportunity Investment Corp. chose the Santa Teresa Village Shopping Center in concordance with its criteria for new acquisitions. The REIT seeks properties mainly in large metro areas of the Western and Eastern U.S. that are mostly neighborhood and community shopping spots, anchored by a major grocer and located in areas where the average household income rests in the upper percentile of the market.
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