154,000-SF Shopping Center Fetches $27M

SAN JOSE, CA-The real estate investment company Doerken Properties Inc. has paid $27 million for White Road Plaza, a 153,848-sf shopping center on 14 acres in East San Jose. Built in 1987, the grocery-anchored center has two large anchor buildings connected by smaller shop spaces and three separate pad buildings. The major tenants include Albertsons, Big Lots, Rite Aid, El Pollo Loco, Kragen Auto Supply and Blockbuster Video.Doerken Properties’ main focus is the acquisition, renovation, management, and development of shopping centers between 70,000- and 350,000 sf, and providing mezzanine financing and/or project equity for real estate assets. Lisa LaManna of Colliers International in Pleasanton represented Doerken in the transaction. Sean O’Carrol and Sandy Berry with Cornish & Carey the seller, the name of which was not immediately available.”This was an exciting opportunity for the buyer, who was able to purchase the property and pay off a complicated conduit loan during escrow,” says LaManna. “While the seller incurred the loan prepayment penalty, the sale was still profitable for the seller and the buyer was able to acquire the property at an 8.3% cap rate in a 7.25% market.”