REIT Acquires 739,000-SF Center for $93M

STOCKTON, CA-Excel Trust Inc. of San Diego has acquired the 739,234-square-foot Park West Place shopping center from Levine Investments of Phoenix for $92.5 million in a deal brokered by Lucescu Realty of Newport Beach, according to Mark Lucescu, president of the firm. Lucescu represented the seller and also produced the buyer.

The Park West center was built in 2004 and is anchored by Lowe's, Target (non-owned), Kohl's, Sports Authority, JoAnn's Fabrics, Ross Dress for Less, and Bed, Bath & Beyond. The property comprises 13 single-tenant outparcels including Wells Fargo, Bank of America, Starbucks, Panera, Wendy's and Sonic Drive-In. The center is adjacent to the Interstate 5 Freeway, (100,000 vehicles per day) and is 100% leased.

Lucescu notes that Stockton is the 13th largest city in California and its population has grown over 30% the last decade. The average household income in a three-mile radius is estimated to be $83,708.

Excel said in September that it was under contract to buy the center, as reported by GlobeSt.com.

Excel said in a news release Wednesday that  it is also under contract to purchase a 473,640-square-foot retail shopping center (of which 325,431 will be owned) called Gilroy Crossing in Gilroy, CA for $68.5 million. Excel stimates that the current annual net operating income is $5.3 million. The property is anchored by Target (non-owned), Kohl’s, Sports Authority, Ross Dress For Less, Bed Bath & Beyond, Michaels, and PetSmart. Excel intends to assume upon closing the existing mortgage of approximately $48 million at an interest rate of 5.01%. The property is adjacent to Highway 101 and is currently 99% leased. In a three and five mile radius the average household incomes are estimated to be $81,722 and $94,177 respectively.

Gary Sabin, CEO, noted that both the Stockton property and the Gilroy center "are dominant centers in their respective markets as evidenced by their consistently high occupancy levels during this recent economic downturn." He added, We believe the acquisition prices for these two properties are extremely attractive given their market dominance and tenant lineup. We remain excited by the number of attractive, well-priced centers in our pipeline.”