Bay Area Grocery Shadow-Anchored Shopping Center anchored by The Home Depot, dd’s Discounts, and Island Pacific Market and shadow-anchored by Winco Foods (NAP), which owned its own store at this location.
Sold at $21,375,000 95% of list price with assumable financing of $13,300,000 at 5.49% interest, maturing August 2023.
The challenge with this asset was the unowned anchor (Winco), Home Depot expiring 1/2024 (just beyond the loan maturity date), dd’s Discounts with lease termination clause and relative weakness of the East Bay Pittsburg location.
We overcame objections and generated multiple offers and ultimately picked a Bay Area family office which purchased the asset to add to its retail portfolio with funds it had obtained by refinancing other properties it owned in the Bay Area. The loan assumption process with LNR and the senior bondholders was lengthy and challenging and we remained on point throughout the process to overcome hurdles in the assumption.