SACRAMENTO-Those who follow @GlobeStcom on Twitter and @GlobeStLIVE may have seen a post teasing the announcement, but GlobeSt.com has learned that JMA Ventures LLC has purchased Downtown Plaza here from the Westfield Group and plans to add value to the six city blocks. Anchored by Sacramento’s only flagship Macy’s, Downtown Plaza is the cornerstone of the pedestrian-only K Street Promenade that connects to the State Capitol and the Convention Center, according to a prepared statement.
Sitting on 14 acres, the property comprises more than 900,000 square feet of retail space, of which JMA acquired approximately 415,000 square feet--Macy’s is separately owned—and 285,000 square feet of office space.
While sources involved in the deal tell GlobeSt.com that they cannot disclose any pricing information, an industry source says it is rumored to be around $25 million. The retail portion is currently approximately 50% leased to tenants that include Century Theatres, 24-Hour Fitness, Gap, Gap Kids, Forever 21 and Express. The two office buildings, which also are approximately 50% leased, are home to several State of California departments as well as private sector tenants that include Integra Telecom, Randstad, and APS Healthcare.
JMA plans to transform Downtown Plaza into an “urban destination” by remaking the area as a lifestyle retail and entertainment experience “that can’t be found at typical suburban malls in the area,” according to a prepared statement. The plaza was originally built in 1971 and redeveloped in 1993.
Cornish & Carey Commercial Newmark Knight Frank’s David Brandenburger, Tom Heacox and John Austin represented JMA. “The Cornish & Carey Commercial Newmark Knight Frank team has been working with JMA for nearly three years to source the right Sacramento opportunity,” says Brandenburger, a senior associate with Cornish & Carey Commercial Newmark Knight Frank. “Downtown Plaza represented the highest profile project on the market and the best strategic fit for this experienced investment, development and redevelopment firm.”
Todd Chapman, CEO of JMA, says in a prepared statement that “this property is vitally important to the Sacramento community.”
That isn’t the first property the Westfield Group has shed this summer. In May, the company sold Eastland Center, an 805,000-square-foot retail power center in West Covina, CA for $147 million to Cole Real Estate Investments.
And JMA has been busy lately on the West coast. In June, as GlobeSt.com reported, the company purchased a five-story building, known as the Offices at Riverpark in Seattle from Clarion Partners for $38.5 million or $362 per square foot. According to CBRE, who negotiated that sale, the price per square foot was one of the highest ever achieved for an office building in the Redmond submarket.
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
