Brentwood shopping center sells in uneven retail rebound

Price of $53M for Sand Creek Crossing Shopping Center works out to $500 psf

2400 Sand Creek Road, Shopping Center
2400 Sand Creek Road (Loopnet, Getty)

A shopping center with a diverse tenant mix has changed hands in the East Bay suburb of Brentwood, according to public records.

GSG partners sold Sand Creek Crossing Shopping Center to Sierra Landmark for $53 million, or $495 per square foot.

Sand Creek Crossing is located at 2400 Sand Creek Road and has 101,922 square feet. The shopping center hosts a number of tenants, from grocery to homegoods to restaurants. The retail roster includes Ross Dress for Less, TJ Maxx, Home Goods, Raley’s, Party City, Krispy Kreme, Round Table Pizza, See’s Candies, Dickey’s Barbeque Pit and Fit Republic.

The East Bay retail market has remained stable as consumers have returned to in-person shopping following the pandemic. According to a second quarter report by Cushman & Wakefield, retail vacancy declined in the first quarter but has remained the same at 6.8 percent in the most recent quarter.

Contra Costa County, where Brentwood is located, experienced more fluctuation with vacancy rate, reporting 7.8 percent in the second quarter, down from 8 percent the previous quarter.

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Another positive trend for the retail market is that asking rents grew by 13.5 percent from last year to $32.83. There was no completed construction in the second quarter, and the only project under construction is the 31,000 square foot Tivoli Plaza in Dublin.

While the retail market is continuing to rebound from the pandemic, inflation has made consumers prioritize daily needs spending over discretionary purchases, according to a report by Marcus and Millichap.

“Well-located, necessity-centric retail properties that exhibited resilience during the health crisis should appeal to a broader buyer pool,” the report said.

Grocers experienced the largest increase in spending, in part because of inflation. Restaurants also seem to be faring well, with more patrons deciding they are more comfortable dining in again. They have experienced a 9 percent increase year-over-year in foot traffic, and an 18 percent increase in sales, according to the report.

The emphasis on daily needs has correlated with the types of deals for retail centers in the East Bay. DJM Capital acquired the Bridgestone Shopping Center in Alameda, which is anchored by grocery outlets and restaurants, for $543 per square foot. The Bayfield Center in San Leandro went for $71 per square foot, and is anchored by department stores. The new owners plan to redevelop the site into a life science campus.

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Trac Bledsoe from B3 Commercial Management and 15555 East 14th Street in San Leandro (B3CRE, Google Maps, iStock)
Commercial
San Francisco
East Bay mall to morph into life science campus