Grocery-Anchored Center Sold to California Firm

MEDFORD, OR— Citivest Commercial , a California-based commercial real estate firm that specializes in value-add retail investments, has acquired Jackson Creek Center , a grocery-anchored, 87,847 square-foot retail asset in the rapidly-growing submarket of Medford. This is the firm’s first acquisition in Oregon .

Jackson Creek Center, a grocery-anchored, shopping center in Medford, is Citivest Commercial’s first Oregon buy.

“Medford is experiencing an economic resurgence,” says Larry Weese , president of Citivest Commercial. “Fueled by increased confidence in the local economy, the City of Medford has invested in numerous developments and created hundreds of new jobs in the manufacturing and distribution industries. With a population of 210,000 people and counting, the Medford MSA is the fourth largest metropolitan area in Oregon, and is poised for continued economic growth.” Anchored by Albertsons , the center features a diverse mix of 13 national and regional retailers in the food, entertainment, and professional service industries.  Seven tenants offer grocery or food-related services, while other tenants offer nail care, dental care, medical/beauty services, and on-site gaming, among others. “The Jackson Creek Center is the only daily needs retail center in the local Medford community, providing food and service-oriented offerings that are not significantly impacted by the ever-increasing rise of e-commerce,” said Weese. “By acquiring this internet-resistant center, we will be able to leverage the asset’s long-term stability and resiliency to drive strong yields.” Built in 2000, the Jackson Creek Center, which was 96.5% occupied at acquisition, demonstrates deep potential for value creation, according to Weese, who points to the existing vacancy and below-market rents as opportunities for a value-add strategy. Citivest plans to renew and reposition the property, which has not been renovated since 2000, in order to increase the center’s value and maximize rent appreciation, capitalizing on the growth of the emerging Medford region. New national tenants have expressed interest which will contribute to the further success of the center. “Ultimately, this acquisition meets all of our investment criteria: value-add opportunity and location in a high barrier-to-entry submarket with strong upside potential,” confirms Weese. “Further, we were able to acquire the asset well below replacement cost, at an attractive cap rate, which outpaces comparable center cap rates throughout the Pacific Northwest.” Weese notes that Citivest Commercial continues to target additional retail investment opportunities in the Oregon market. The property is located at 2290-2380 Main St. in Medford, situated along the I-5 freeway in the southwest region of the city. The seller, JS Western , was the original developer of the center. Citivest acquired the property for $5.385 million. Citivest Commercial Investments is a related company to Citivest, Inc. The Citivest partners are Dana Haynes, Dwight Belden and Weese. Headquartered in Newport Beach, CA, Citivest is a privately held owner, operator and developer of commercial real estate.  The company’s executives, each with over 25 years of retail experience, have an extensive multi-cycle track record in the retail sector with a focus on value-add acquisitions and repositions along with select ground-up development projects.