111,251-SF Center Trades Hands for $22M

Country Club Village was developed in 1995 by Spieker Properties, which eventually sold the 2.55-acre property to Pacific Retail Trust, a Dallas-based company that merged with Regency in 1999. The sale price translates to a 7.3% cap rate based on projected 2004 NOI. John Sechser, Kevin Van Voorhis, Andy Zighelboim and Scott Kinsey of Colliers International brokered the sale to Rreef.

Van Voorhis tells GlobeSt.com that Regency was taking advantage of current cap rates in order to redeploy the capital into other development opportunities. Rreef, on the other hand, likes the influence the development of some 10,000 homes in the Dougherty Valley will have on the property. "They see it as an infill-protected center with a captured trade area that will improve over time," says Van Voorhis.

This is the third California transaction for Regency that became known in recent weeks. The owner and operator of grocery-anchored retail centers also sold Slatten Ranch Shopping Center, a 118, 245-sf fully leased property in Antioch that sold for $35.5 million. The 10.4-acre property is anchored by Barnes & Noble, Cost Plus and Bed, Bath and Beyond. The buyer was West Valley Properties of Santa Clara, CA. The initial cap rate was 7% based on projected 2004 NOI.

On the acquisition side, Regency paid just over $26 million for Clayton Valley, a well-located 217,000-sf shopping center in Concord, CA, that it plans to rehabilitate. The 20-acre property is located at the high-traffic intersection of Ignacio Valley Road and Clayton Road but is functionally obsolete and missing its grocery anchor, which moved to a larger space down the street in order to incorporate a pharmacy component. Regency plans to spend large amounts of capital into giving the center a new look, and is reportedly already drawing interest from national chains interested in a redeveloped center.