SAN DIEGO- Excel Trust Inc. has acquired the 473,640-square-foot Gilroy Crossing in Gilroy, CA for $68.5 million and a 100,511-square-foot Edwards Theater property in San Marcos for $23.6 million. Excel bought the properties using a combination of cash and shares, the company said in an announcement regarding the deals.

The Gilroy center, of which 325,431 square feet is owned, generates annual net operating income of approximately $5.3 million, according to Excel. The property is anchored by Target (non-owned), Kohl’s, Sports Authority, Ross Dress For Less, Bed Bath & Beyond, Michaels, and PetSmart. Excel assumed the existing mortgage of approximately $48.0 million which bears interest at 5.01%. The property is adjacent to Highway 101 and is currently 99% leased.

According to Mark Lucescu of Newport Beach-based Lucescu Realty, who represented seller Lakha Investments of Seattle, Gilroy is one of the fastest growing communities in the Silicon Valley. “The city’s proximity to Silicon Valley and the Bay Area, as well as excellent access to housing and transportation, gives Gilroy a location advantage for growing industries,” Lucescu said. “Santa Clara County is a major employment center for the region, providing more than a quarter of all jobs in the Bay Area.” Built in 2004, Gilroy Crossing is in a trade area with an average household income within a 3-mile radius is $91,420.

The Edwards Theater that Excel bought generates annual net operating income of approximately $2.18 million and is leased by Edwards, which is a subsidiary of the Regal Entertainment Group. Excel Trust assumed the existing mortgage of approximately $12.4 million, which bears interest at 6.74%.