Sterling Organization Acquires Bay Area Retail Centers

The Franciscan and Mohave Centers in Fremont, Calif. Image courtesy of JLL Capital Markets

Sterling Organization has closed its purchase of two retail properties in Fremont, Calif., for $40.5 million. The firm has acquired Franciscan Center, a 106,840-square-foot shopping center, and the adjoining Mohave Center, a 10,228-square-foot strip mall.

The previous owner of the site was Danville, Calif.-based company Patterson Ranch Inc., according to CommercialEdge data. JLL Capital Markets, which represented the former owner in a singular transaction selling both assets, declined to name the seller in a statement announcing the transaction. However, JLL did note that the retail properties were sold by their original owner, who had held the assets for half a century.

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Located in the San Francisco Bay Area, the properties have an occupancy rate of 92 percent. Tenants at the properties include supermarket Safeway, which anchors the Franciscan Center, fast food locations Taco Bell, KFC and Burger King, a 7-Eleven location and a Bank of America branch.

Franciscan Center, which sits adjacent to the Tesla Fremont Factory, is located at 46690-46850 Warm Springs Road, with Mohave Center located at 46650 Mohave Drive. The projects are near major freeways, corporate campuses and residential areas.

JLL’s Retail Capital Markets Investment Sales and Advisory team, led by Managing Directors Gleb Lvovich, Geoff Tranchina and Eric Kathrein, and Senior Director Daniel Tyner, advised the seller.

West Palm Beach, Fla.-based Sterling Organization invests in value-add retail real estate, core grocery-anchored retail real estate and consumer fulfillment and distribution real estate. The firm owns 73 properties in various U.S. markets. JLL’s Tyner praised the grocery-anchored asset class in the statement, saying the sector drives strong demand and pricing.