SALINAS, CA-HFF has closed the sale of Boronda Plaza, a 93,796-square-foot, grocery-anchored retail shopping center in Salinas.

HFF marketed the property on behalf of the seller, Donahue Schriber. Phillips Edison-ARC Shopping Center REIT Inc. successfully purchased the asset free and clear of existing debt amongst a highly competitive field of 20 bidders.

Boronda Plaza is located at 1576 North Sanborn Road at the intersection of East Boronda Road approximately three miles east of Highway 101. Situated on 9.5 acres, the center was built in 2002 and is 95% leased to multiple tenants including anchor tenant Food 4 Less, which occupies 59,412 square feet of space.

The HFF investment sales team representing the seller was led by managing director Nicholas Bicardo, along with associate director Mark Damiani, both out of the San Francisco HFF office, as well as managing director Bryan Ley from HFF's LA office.

“This transaction represented an excellent opportunity for the buyer to acquire a dominant grocery-anchored retail center located in a secondary market in Northern California at a very attractive yield comparatively to primary markets,” said Bicardo. “Given where spreads are on cap rates between primary and secondary markets, we are seeing a tremendous amount of capital migrate to similar markets like Salinas in search of higher yields.”

Donahue Schriber is a private real estate investment trust (REIT) operating on the West Coast. The company owns and operates a portfolio of 74 neighborhood, community and power shopping centers representing more than 11 million square feet throughout California, Arizona, Nevada, Oregon and Washington.

Phillips Edison-ARC Shopping Center REIT Inc. is a public non-traded REIT that seeks to acquire and manage well-occupied grocery-anchored neighborhood shopping centers having a mix of national and regional retailers selling necessity-based goods and services, in strong demographic markets throughout the United States. The REIT is co-sponsored by two industry leaders: Phillips Edison & Company, who has acquired more than $1.8 billion in shopping centers throughout the United States, and AR Capital, LLC, a real estate investment program sponsor dedicated to governance best practices. As of January 21, 2013, Phillips Edison-ARC owned, directly or indirectly through a joint venture in which it has a controlling interest, and managed an institutional quality retail portfolio consisting of 32 grocery-anchored shopping centers totaling 2,997,845 square feet.

HFFand HFFS are owned by HFF, Inc. HFF operates out of 21 offices nationwide and is a leading provider of commercial real estate and capital markets services to the U.S. commercial real estate industry.

Instant Insights /

Phillips Edison-ARC Picks up Grocery-Anchored Retail Center

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