SAN JOSE, CA-Its official. Vornado Realty Trust has completed the sale of the Plant, a power strip shopping center in San Jose, CA for $203 million. GlobeSt.com reported back in January that the buyer was a division of Cole Real Estate Investments and at the time, we figured the price was approximately $205 million.
Vornado also recently closed on a retail property in Philadelphia, which is part of the Gallery at Market East, for $60 million, in a separate transaction.
The sales of the two closed retail centers resulted in net proceeds of approximately $156 million, after repaying the mortgage on the San Jose property and closing costs, according to a prepared statement. A net gain of $69 million will be recognized in the second quarter, the statement says.
The Plant retail development is at Curtner Avenue and Monterey Road in San Jose and weighs in at 650,500 square feet, one of the largest in the region, according to Vornado. It occupies a 55-acre former brownfield site that used to be a General Electric plant.
Because some retailers own their space, Cole Credit Property Trust IV is buying 510,000 square feet, according to GlobeSt.com's previous article. Retailers at the plant include big-box stores like Target, The Home Depot, Best Buy, Ross, and others.
In 2010, the center was valued at about $150 million. Vornado acquired full ownership in 2010 by purchasing 70% of the center from its equity partners, Westrust Ventures LLC and Pacific Coast Equity Partners.
GlobeSt.com previously reported that the San Jose area is seeing huge investor interest. Not only is there a huge demand from tech office tenants, but investors are looking at development opportunities in the area. GlobeSt.com recently exclusively reported that a landmark surface grade parking lot property located in the core of Downtown San Jose, CA was on the block for sale, allowing for a substantial high density urban mixed-use redevelopment. Jeff Conover, Christopher Tramontano, and Nicholas D'Argenzio of Faris Lee are marketing the lot on behalf of the seller who acquired the property in 2009. And according to Tramontano, immediately after hitting the market, the firm garnered a significant amount of interest from the likes of mixed-use, multifamily and student housing developers, as well national parking owner/operators seeking to capitalize on the improving San Jose market.“The area is now experiencing development and investment activity at levels achieved prior to the economic downturn.”
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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.
