SAN MATEO, CA-Central Park Plaza, a 111,500-sf Downtown retail center here, has traded hands for about $40 million. Tan Group, a Palo Alto-based developer and investor purchased the property from a group of investors associated with locally based Sand Hill Property Co.The property occupies a block-long section of Downtown at 487-491 South El Camino Real and 2-98 East 4th Ave. It was 85% leased at the time of sale. Tenants include Equinox Fitness and Spa, Jamba Juice, Blockbuster Video, Drexel Heritage, Washington Mutual Bank and East West Bank. Tan Group’s capitalization rate on the investment is believed to be in the 6.5% range, assuming some additional leasing. Both sides of the transaction were brokered by Michael Federle and Nicholas Bicardo, respectively senior vice president and investment associate at Grubb & Ellis in San Francisco. “This transaction was the up-leg of a 1031 exchange for the buyer,” says Federle. “There was an $11.7-million loan in place at an 8.7% interest rate, which had to be defeased. The buyer then placed a new loan on the property with Prudential Mortgage Investors.”

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