Retail Deal Rings Up $18M

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ELK GROVE, CA-San Diego-based Pan Pacific Retail Properties Inc., the largest neighborhood shopping center real estate investment trust focused exclusively on the West Coast, has sold the 205,800-sf Laguna 99 Plaza shopping center for $18.6 million. The buyer was GD Development LLC. It was among the many recent deals by Pan Pacific, who remains active in the marketplace as both a buyer and seller of shopping center property.Pan Pacific will look for other opportunities with the proceeds from the sale, according to Graham Bryan, president and CEO of the San Diego office of Resource Commercial Real Estate. “(Pan Pacific) routinely will turn their assets and acquire other urban, grocery-anchored assets in the West,” Bryan tells Globest.com.Bryan describes the center, which is at the intersection of State Highway 99 and Elk Grove Blvd., “as a property with re-tenanting opportunities.” The center was 96% leased at the time of the sale and counts Pak N Sav Foods and Wal-Mart as its major tenants, and is in an affluent area of Elk Grove that has an average household income of $83,000. “The area around here has become more upscale since it was originally developed in 1991, so there is the potential for re-tenanting opportunities,” says Bryan, who represented Pan Pacific in the deal. Greg Dalton of the Roseville office of CB Richard Ellis represented the buyer. In Pan Pacific’s third quarter report, the company had $27 million in shopping center sales and had one major acquisition, the $46 million buy of Foothill Marketplace. As reported on Globest.com, Pan Pacific purchased the 288,347-sf shopping center from Wattson Breevast, the center’s Newport Beach-based developer. In the company’s third quarter report, Stuart A. Tanz, president and CEO of Pan Pacific said “year-to-date we acquired $103 million of grocery-anchored centers. Looking ahead to 2005, given the strong fundamentals of our core markets and business, together with our conservative balance sheet, we are well-positioned to continue our long-standing track record of generating solid growth and increased shareholder value.”