The purchase price for Sand Creek Crossing translates to a sub-7% capitalization rate for the buyers, a group of individual developers from Marin County who joined forces to satisfy 1031 Exchange requirements.
"The sale has established a new low water mark for cap rates in the county," says Colliers International broker Lisa LaManna, who with William Monheit of Newmark Realty Capital Inc. handled both sides of the transaction. "It indicates a huge pent-up demand for this product type."
Current tenants at Sand Creek Crossing include Raley's, TJ.Maxx, Ross Stores and Starbucks. The property is virtually full; there is one 3,000-sf space available, but a lease deal is in the works, LaManna tells GlobeSt.com.
"If you put a retail center on the market that includes ownership of the grocery and drug component, you will have buyers running to your front door," says LaManna, a retail specialist who for 10-years prior to her brokerage career appraised shopping centers and regional malls. "It's an amazing time right now."
Since the sale of San Creek Crossing several weeks ago, LaManna says there are two more grocery-anchored properties rumored to be trading at sub-7% cap rates--the Rivermart off the Montague Expressway and the Hacienda Crossing in Dublin.
In addition to setting a low water mark for cap rates in the area, the sale of Sand Creek Crossing also sets a new high water mark for LaManna's career. "This price level is extremely rare for a woman," says LaManna. "Everybody has said this transaction launches me into the big leagues, establishes me as a broker for institutional-grade retail properties."
In addition to brokering the sale, Colliers was awarded the leasing and property management assignments for the property. Sandra Weck, a senior vice president at Colliers in Pleasanton, is the lead leasing broker. Colliers International Asset Management will handle the property management.
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