SITE Centers Sells Free-Standing Whole Foods for $44M

SITE Centers Corp. has sold the 57,218-square-foot, free-standing Whole Foods at Bay Place in Oakland, Calif., for $44.4 million. JLL Capital Markets arranged the transaction.

Completed in 2007, the retail asset is fully leased to Whole Foods on a long-term basis. The Class A property occupies a 2.2-acre site at 230 Bay Place in downtown Oakland, a location with many multi-housing communities within walking distance. The immediate area is densely populated, with more than 289,000 residents within a 3-mile radius.

JLL Managing Directors Eric Kathrein, Geoff Tranchina and Gleb Lvovich and Director Warren McClean led the Investment Sales and Advisory team representing SITE.

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Earlier this week, SITE Centers announced it has completed the spinoff of Curbline Properties Corp. as the first public REIT focused exclusively on convenience retail assets. The new company immediately began trading on the New York Stock Exchange under the symbol CURB.

In preparation for the spinoff, SITE Centers has been building its capital reserves through aggressive sales of multiple retail centers across the U.S. over the past year or so, totaling more than $1.3 billion. These included—most recently—the current disposition, as well as the sale of two properties in Florida, The Shops at Midtown Miami and Cypress Trace in Fort Myers.

Whole Foods expansion

In a report earlier this year that focused on the grocery sector, Marcus & Millichap noted Whole Foods’ plans to open at least 100 new locations this year. The report also remarked on the trend by some supermarkets to follow in the footsteps of some of the big box retailers by launching smaller formats to target specific customer bases.

“Geared toward urban residents seeking quick shopping trips, Whole Foods will debut its Market Daily Shop in New York City later this year, with plans to expand the 7,000- to 14,000-square-foot store model to other cities nationwide,” the report stated.