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71,000-SF Retail Center Fetches $23M

CUPERTINO, CA-Chicago-based Heitman Capital Management LLC sells the Oaks Center here to Sand Hill Properties, a San Mateo-based investor that plans to raze a vacant 16,000-sf theater building at the center and replace it with a larger building, according to a broker in the transaction.

By Brian K. Miller | Updated on January 13, 2005

CUPERTINO, CA-Sand Hill Properties, a San Mateo-based investor, has acquired the Oaks Center here from Chicago-based Heitman Capital Management LLC. The 71,175-sf retail center traded for $23 million.The center is located at 212269 Steven Creek Blvd. Built in 1977, it is about 80% leased to Shane Co., Jamba Juice, Bossa, Bella Dance and Sports Ware, Togos and Coldwell Banker. Grubb & Ellis’ Mike Federle, who brokered both sides of the transaction with partner Nicholas Bicardo, tells GlobeSt.com that the vacancy is entirely comprised of a vacant 16,000-sf theater building that will be torn down and replaced with a 30,000-sf building. The redevelopment will be used to bump up the in-going 5.6% cap rate on the investment, says Federle.The center came to Heitman as part of its acquisition of Stoneson Development Co. For Sand Hill, Federle says the purchase completes a 1031 exchange that began with the sale of Central Park Plaza in San Mateo and is in line with the company’s strategy to purchase and redevelop retail centers on the San Francisco Peninsula.

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