San Jose Shopping Center Gets $21M Refi

Brothers International Holding Corp. has obtained a $20.5 million loan for the refinancing of Almaden Safeway Center, a 143,452-square-foot grocery-anchored shopping center in San Jose, Calif.

JLL Capital Markets arranged the ten-year, fixed-rate loan through RGA Reinsurance Co. Senior Managing Director Bruce Ganong, Director Lillian Roos and Associate Matthew Mingrone worked on behalf of the borrower. At the time of the sale, the retail center was 100 percent leased.

The 10 tenants at Almaden Safeway Center make up 95 percent of the GLA and have a weighted average lease term of 7.2 years. Anchored by Safeway, the center also includes retailers such as JoAnn’s Fabrics, McDonald’s, T-Mobile and Savers.

Located at 4950 Almaden Expressway within the South San Jose submarket, the retail center in close to Interstate 85, which allows direct access to downtown San Jose, Campbell and Los Gatos. The two-building property serves approximately 500,000 individuals within a five-mile radius, while the average household income within a 3-mile area is $161,000, according to JLL.

The retail vacancy in San Jose ended a five-year climb in 2023, due to increasing tenant demand in the metro’s largest submarket by inventory, South San Jose. According to a Marcus & Millichap report based on data through the first nine months of 2023, retail properties changed hands most frequently across this submarket, consistent with previous years.