SAN FRANCISCO—In an update to a previous story on the four retail centers purchased by Donahue Schriber Realty Group, GlobeSt.com chatted with the firm's chief investment officer, Dave Mossman, about Prudential Mortgage Capital Company's $118.5 million in funding to solidify the acquisitions. The financing, provided in four separate 10-year, cross-collateralized, fixed-rate loans, is secured by four grocery-anchored shopping centers in California and Washington: Gilman District in Berkeley, CA; Village Oaks in San Jose, CA; Lakeland Town Center in Auburn, WA; and Westgate North in Tacoma, WA.
Mossman tells GlobeSt.com: “The first acquisition was the Target and Safeway anchored center, Village Oaks Marketplace located in San Jose. Given the seller's strong reputation, the asset quality, including the favorable tenant line-up and the location of the asset, checked a lot of boxes for all the major institutions. We knew that if we were selected as the buyer we would need to move quickly, especially if we wanted to enhance our returns and place financing on the asset. Although we were prepared to pay all cash for the asset, Prudential was able to meet our tight closing schedule in January 2015 which included working through the holidays.”
Throughout these financings, Donahue Schriber Realty Group was advised by Craig Zarro of Preferred Capital Advisors.
“These properties are located in strong retail locations with dense populations and high median incomes. The superior quality of these Class A properties, two of which are newly constructed, along with their strong grocery anchors, helped make this an attractive transaction for us,” said Elizabeth Velazquez, a director with Prudential Mortgage Capital Company's San Francisco office, who led the transaction. “Another key factor in deciding to finance these properties was the experience and strength of Donahue Schriber. This is our first loan with the firm and we look forward to continuing our relationship with them.”
Grocery-anchored retail properties are desirable as there is typically a regular flow of customers who need food, medicine and other everyday items, according to Velazquez.
Gilman District
A newly constructed 91,228-square-foot retail center in Berkeley, the property is located near major transportation hubs, and anchored by a Whole Foods market and Office Depot.
Village Oaks
A newly constructed 320,000-square-foot retail center in San Jose, the property is located in the Hitachi master-planned community on Cottle Road and Great Oaks Parkway, close to major transportation hubs and located in a region that is underserved by retail. It is anchored by Safeway, Target and Lowe's.
Lakeland Town Center
This 125,421-square-foot retail center in the affluent Lake Tapps community of Auburn, WA is within an industrial area. It is anchored by Haggen, the largest independent grocer in the Pacific Northwest. As previously reported, this asset was sold for approximately $51.5 million.
Westgate North
A 129,229-square-foot retail center in Tacoma, the property is located along a heavily trafficked corridor on the north end of the city's trade area. It is anchored by a newly renovated Safeway and an Ace Hardware.
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Lisa Brown
Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.
