Weingarten Acquires 116,000-SF Tully Corners

SAN JOSE, CA-An affiliate of Weingarten Realty Investors called WR Tully LP has acquired the 116,000-sf Tully Corners Shopping Center with a private investment group in a tenant-in-common transaction, according to the brokerage firm of Arroyo & Coates. The new owners acquired the 19-year-old grocery-anchored center, which is at the southwest corner of Tully and Quimby roads, from Tully Corners Associates LP in a deal that was brokered by Pedro Arroyo and Vincent Aicale of Arroyo & Coates.

Built in 1988, the shopping center is occupied by national tenants such as Petco, Payless Shoe Source, and Party America. In addition, notes Weingarten's Gary Scott, the center "has the dominant grocer in the trade area, FoodMaxx."

Scott, who is the regional director of acquisitions for Weingarten, says that the property "offers the opportunity for strong future rent growth." Weingarten represented itself in the deal, with the sellers represented by the team from Arroyo & Coates.

Weingarten leasing information regarding the property notes that it is less that one mile from US Route 101 and a few blocks away from Capitol Expressway, a major cross-town thoroughfare for eastern and southern portions of San Jose. Weingarten also cites a trade area population of more than 269,000 within a three-mile radius of the center, with an average household income of more than $89,000.

Terms of the sale were undisclosed, but recent market reports on the Bay Area's retail property sales trends show that investor demand remains strong because of the solid fundamentals and relatively high barriers to entry for new retail space. As a result, landlords are generally in a strong position and rents are rising.