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Supply-Demand Imbalance Prompts $64M Bid Sale

SAN FRANCISCO, CA-A dearth of retail properties on the market and many hungry investors has one broker using a date certain bidding process to dispose of two retail centers for his clients.

By Joel Cone | Updated on March 18, 2002

SAN FRANCISCO, CA-Due to the tremendous imbalance between supply and demand, two retail centers totaling more than 260,000 sf will be sold through a date certain bidding process.

“While most economic analysts have totally missed the dramatic increase in retail tenant activity in the Bay Area over the last six months, savvy retail investors have not,” says Dan Wald, SVP of the Investment Services Group of BT Commercial Real Estate and the listing broker for both properties. “They see little new supply being developed and an upward pressure on rents. As a result, there is plenty of capital willing to compete for quality product when it becomes available. There are so many more buyers than properties, that we’re going with a date certain bid process.”

With an initial asking price of $45 million, the 150,000-sf 555 Ninth Street Retail Center in San Francisco is for sale at an 8.25% cap rate. Currently owned by Northwestern Mutual Life Insurance Co. based in Milwaukee, Wis., the property is managed out of the company’s San Francisco office.

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