Target-Anchored Retail Property Trades

SAN JOSE, CA—ValueRock Realty Partners, a vertically-integrated real estate investment and operating company, has acquired a 120,437-square-foot retail property fully-occupied by Target for $18.25 million.

The property is located on just over nine acres in the Silicon Valley market at 2155 Morrill Avenue in San Jose. The acquisition marks the first entry into Silicon Valley for ValueRock and brings the firm's 12-month acquisition total to 500,000 square feet of retail space.

“This prime Target-occupied property is one that we intend to hold long-term as it offers both a well-known tenant and strong in-demand location in a high barrier-to-entry market,” said David Lee, chairman and CEO of ValueRock Realty Partners. “We've historically focused our retail investment strategy in Hawaii and Southern California, but have long looked to a number of Western US markets, such as Silicon Valley, that have great potential for diversifying our retail strategy.”

The property is located within a larger retail center that encompasses Walgreens, California Ranch Market and other neighborhood tenants. It is well-located off Landess Avenue and Highway 680, which has traffic counts of more than 60,000 cars per day.

As part of its growth strategy, ValueRock has been building its retail portfolio, which is now over two million square feet of retail properties. Over the last 12 months, ValueRock has added more than $100 million worth of property including retail assets located in West Los Angeles, Aliso Viejo and now San Jose. The properties all fit the firm's investment criteria to build a world-class portfolio of core and value-add.

“We are continuing this growth momentum with nearly 500,000 square feet of deals in the pipeline. We are moving aggressively into 2014 as we believe there is a great deal of opportunity in the market right now,” said Lee.

Patrick Cox, managing director and chief development officer, ValueRock Realty, noted, “ValueRock has been strategic since its formation by creating a vertically-integrated commercial real estate platform that allows us to be communicative and transparent with the ability to move swiftly. I think that type of agility bodes well for this market.”