SAN JOSE, CA—Donahue Schriber Realty Group, a West Coast owner, operator, and developer of neighborhood, community, and power shopping centers, recently closed on the acquisition of Village Oaks shopping center in San Jose, CA. Donahue Schriber is a privately-held REIT with 70 shopping centers representing over 11 million square feet of retail space throughout California, Nevada, Arizona, Oregon, and Washington.
David Mossman, Chief Investment Officer of Donahue Schriber explains that “Village Oaks presented a rare opportunity to acquire a newly constructed grocery-anchored shopping center that was developed by one of the best in Northern California, Hunter Properties. The quality of the real estate and tenants also made it an easy decision.”
The center was built in 2014 and includes 320,000 square feet of retail space. The property was purchased from Cupertino-based Hunter Properties. The Target and Safeway anchored community center is located at the intersection of Cottle Road and Great Oaks Parkway, between Highway 101 and State Route 85. The site is part of the City of San Jose's Hitachi Transit Village master plan, the largest infill development project in the region.
While sources involved in the purchase tell GlobeSt.com that they cannot disclose any pricing information at this time, an unidentified source not involved in the deal says it was $111 million.
In addition to anchors Target and Safeway, the center is home to a virtual who's who of national retail brands such as: Marshalls, Party City, Petco, ULTA, Chase Bank, and Bank of America, to name a few. Restaurant and quick-serve food operators include: Panera Bread, MOD Pizza, Five Guys Burgers & Fries, Chipotle Mexican Grill, among others.
In November 2013, Donahue Schriber purchased Safeway anchored, Downing Center in Los Gatos. The Village Oaks acquisition further reinforces the company's commitment to the Bay Area.
According to a recent Sililcon Valley retail market report from Marcus & Millichap, Silicon Valley's retail market is fueled by one of the highest household income levels in the nation, which is attracting retailers to the metro's limited amount of vacant space.
Retail spending is nearly 50% above the rate in 2000, the firm says in the report, which bodes well for local retailers. “Supply growth, meanwhile, remains limited because of the built-out nature of the most desirable areas of the market. Additionally, booming office and multifamily markets are encouraging builders to pursue those opportunities rather than retail centers.”
The firm adds that “Most investors would love to gain a foothold into the Silicon Valley market or expand their presence there, though limited available inventory and high prices keep asset turnover below the national average. New single-tenant deals typically trade with several bids in capital preservation plays.”
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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.
