The firms' joint venture partnership has shelled out $50 million for the 147,000-sf neighborhood shopping center, which is located at the northwest intersection of El Camino Real and Aviara Parkway. Anchored by Pavilions and UltraStar Cinemas, the property is currently 98% occupied.

Plaza Paseo Real is "a stable asset," according to Tom Falatko, vice president of acquisitions for Madison Marquette, who says his firm feels the property has "a lot of potential." He tells GlobeSt.com that his firm was interested in the property because of its location in a market with very strong demographics and high barriers to entry. These characteristics "peaked our interest and attracted us to the property," he says. According to Falatko, the new ownership plans to "upgrade the tenancy to better serve the community," as well as implement some "cosmetic improvements."

The retail asset was formerly owned by two public funds involving the San Jose Federated City Employees' Retirement System and the San Jose Police & Fire Department Retirement Plan. Both funds are advised by MIG Realty Advisors Inc.