Bay Area Retail Center Trades for $95M

The partnership between Arc Capital Partners and Milan Capital Management has purchased The Plant, a 367,000-square-foot super-regional retail center in San Jose, Calif.

The property traded for $95 million, as reported by Silicon Valley. Oceanview Life provided a $71.8 million acquisition loan, according to CommercialEdge information.

The Plant’s previous owner was Global Net Lease, which merged in 2023 with The Necessity Retail REIT, which had purchased the asset in 2022. GNL has recently subdivided the property into two parts: The Plant, which recently traded, and a separate property that remains under the company’s ownership and has significant value. The property is leased to Home Depot, which has a long-term lease.

Completed in 2008, The Plant encompasses 17 buildings across some 45 acres. Anchored by Best Buy, Ulta Beauty and Ross Dress for Less and shadow-anchored by Target and Home Depot, the super-regional shopping center also has a diverse mix of retailers such as Grico, McDonald’s, Game Stop, Applebee’s, Starbucks and Petsmart, among others. The new owners are actively engaged in preleasing negotiations to fill major vacancies.

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Located at 1 Curtner Ave., at the corner of Curtner Avenue and Monterey Street, the property is 3 miles from downtown San Jose. There are nearly 87,000 households within a 3-mile radius, having a median income of $104,299, according to Atlantic Retail.

San Jose’s retail scene

Driven by a strong economy and diverse community, San Jose’s retail market remains resilient. The vacancy rate clocked in at 4.9 percent, increasing by 30 basis points year-over-year, according to a second-quarter 2024 report by Institutional Property Advisors. A total of 80,200 square feet of retail space was under construction in the metro at the end of June, while the average asking rent reached $36 per square foot.

T&T Supermarket Inc.—the largest Asian food retailer in Canada—will open its first California location in San Jose in the fall of next year. The 55,000-square-foot store will operate inside Federal Realty’s 645,000-square-foot Westgate Center.