Out-of-State Buyers Nab East Bay Safeway-Anchored Stripmalls

Two East Bay stripmalls anchored by Safeway supermarkets have drawn the brawn of out-of-state investors, who in separate deals plunked down a combined $88.9 million.

An affiliate of the Florida-based Sterling Organization paid $61.1 million for a Safeway-anchored Rossmoor Shopping Center at 1990-1998 Tice Boulevard, in Walnut Creek, the San Jose Mercury News reported.

The deal for the 118,800-square-foot retail center, bookended by a CVS Pharmacy, works out to $514 per square foot.

“This property is a great asset and essential hub for the community,” Bob Dake, a principal executive with Sterling, said of the strip center purchase. “We see tremendous potential to further elevate its appeal.”

An affiliate of Ohio-based Phillips Edison & Company also paid $27.8 million for the Safeway-anchored Clayton Station Shopping Center at 5431 Clayton Road, in Clayton.

The deal for the 67,500-square-foot retail center, bookended by Walgreens, works out to $412 per square foot. The sale didn’t include the Safeway supermarket site.

The sellers of both properties were undisclosed.

Sterling, founded in Palm Beach in 2007, has $2 billion in assets under management in 77 properties with 13 million square feet in at least 19 states, according to its website.

Phillips Edison, founded in 1991 in Cincinnati, raised $547.4 million in an initial public offering in 2021, and began trading on the Nasdaq exchange, according to its website. It owns grocery-anchored shopping centers nationwide, with a portfolio of 300 properties.

— Dana Bartholomew