A mixed-used commercial center in the East Bay suburb of San Ramon has traded hands for $11.2 million, or $215 per square foot. San Francisco-based University Avenue Partners purchased the property from Blackstone to add to its growing East Bay portfolio, according to public records.
The 52,000-square-foot property is anchored by health and beauty retailers as well as rental car companies. The center also has a number of medical offices; including a dentist and optometrist. The complex is 90 percent leased, with an average tenant tenure at the property of 10.4 years.
Blackstone acquired the San Ramon Property when they purchased PS Business Parks for $7.6 billion in July. The new owner determined that the asset located at 2551 San Ramon Boulevard, along with others, did not fit the firm’s long term plans, a person familiar with the deal told TRD.
University Avenue Partners continues its expansion into the East Bay with this purchase. The company has acquired the Danville Pavollian, and more recently, 5321 Hopyard Road in Pleasanton as well.
“San Ramon has long been a highly sought-after real estate market,” Don Tepman, from University Avenue Partners. said. “This transaction represents an exciting follow-up to our recent purchase in Pleasanton and increases our presence within the East Bay as we continue to expand our retail property portfolio.”
The East Bay Retail market experienced a slight decline in the third quarter, according to a new report by Cushman and Wakefield. This was largely attributed to tenants vacating space in Contra Costa County, where San Ramon is located. The county reported negative absorption of nearly 200,000 square feet of retail space, which raised its vacancy rate to 8.7 percent, or 2.6 percent higher than adjacent Alameda County.
The sale is along the lines of other retail transactions earlier in the year. An Asian-themed shopping center in Fremont sold for $209 per square foot. A more recent transaction in the Silicon Valley market saw a New York-based investor pay about $270 per square foot for The Plant Shopping Center, a major open-air mall in San Jose.
However, there were larger transactions that were anchored by daily needs retail that went for more than double than the San Ramon deal. A Brentwood shopping center went for $435 per square foot, and an Alameda center secured a sale for $543 per square foot deal.
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San Francisco
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