SAN JOSE—Construction trucks immediately rolled on a retail project as the result of a $48.5 million senior loan provided by PCCP LLC. Dollinger Properties received the financing for the development of Sprouts @ Brokaw, which will ultimately total approximately 143,000 square feet. The new shopping center will be anchored by Sprouts Farmers Market, which will occupy nearly 30,000 square feet of space and is anticipated to open in the summer of 2016.
Dorian Farhang with PCCP, tells GlobeSt.com: "As a lender, we took everything into consideration–a reputable developer with whom we have an existing relationship; the proven success of Dollinger Properties' retail center across the street; and a strong and growing anchor tenant to kick-start the infill project and fill a need for additional grocery demand in the area.”
Sprouts @ Brokaw is situated at the intersection of East Brokaw and Oakland Roads. When completed, the development will be an attractive grocery-anchored center in a strong Silicon Valley retail and office corridor. Additionally, it is within an affluent area that is recording continued population growth and residential development activity.
“We were attracted to the loan opportunity given the reputation of Dollinger Properties and the ability to fund the development of a prime Silicon Valley grocery-anchored retail center,” said Erik Flynn with PCCP. “Dollinger Properties is an experienced developer with proven local retail success. Sprouts @ Brokaw will help satisfy the unmet demand for retail options in this market.”
In 2013, Dollinger Properties built the, 96,299-square-foot Brokaw Commons retail center, which is fully occupied and is located directly across the street from its new project. Sprouts @ Brokaw will feature similar designs and finishes to the neighboring Brokaw Commons shopping center.
Damon P. Scholl, vice president of development and acquisitions for Dollinger Properties added: “We've received and are receiving tremendous interest in the center from fantastic restaurants and retailers with demand that well outweighs supply. We're setting new market rents and anticipate that the center will not only be fully leased prior to completion of construction, but could be 100% leased by end of first quarter 2016. The city and neighborhood is really going to love the line-up we're putting together here.”
PCCP also provided an additional $17.1 million mezzanine loan this week to Swift Real Estate Partners for the redevelopment of Airport Technology Park, a six-building, multi-tenant office park totaling 295,426 square feet in Santa Clara, CA.
As previously reported, PCCP provided a $48 million senior loan to fund the mixed-use Dogpatch project on Texas Street.
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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.
