East Bay Downtown Retail Center Gets New Owners In $33M Deal
A joint venture of Los Angeles-based Paragon Commercial Group and San Francisco-based Longmarket Property Partners closed on its sale of the property late last month, Newmark Knight Frank NorCal, which represented the sellers, said on Wednesday.
Shops at Todos Santos, a Delaware LLC, is shown in property records as the buyer, and it shares a Newport Beach, California, address with investor TRC Retail, which is also linked to the recent buyer of a $60.25M San Bruno apartment community.
The properties, which include tenants like Peet's Coffee, Chipotle and Old Spaghetti Factory, sold for a total of $33M, according to property data site Reonomy. In 2016, Paragon Commercial and Longmarket Property paid about $19M for the center, which is adjacent to Concord Square in the middle of the city's downtown and fully leased.
Newmark Knight Frank Vice Chairman Nicholas Bicardo, Managing Director Brandon Rogoff, Senior Managing Director Forest Gherlone and Senior Managing Director Mike Zystra represented the sellers in negotiations.
Previous ownership invested an undisclosed sum in redevelopment of The Shops at Todos Santos. Last year, Paragon Commercial in particular announced it would invest half a billion dollars in retail properties across California in 2019 and 2020.
The entire property, which has only gone on the market twice in the last 100 years, heavily features "urban necessity-based" retail, according to Newmark Knight Frank. That kind of retail, featuring gyms or grocery stores, has generally outperformed malls in the past year.
“The retail momentum for urban street retail in this corridor will continue to strengthen, making this a key market for retailers expanding in the East Bay,” Paragon Commercial Northern California Director of Investments Patrick McGaughey said.
TRC Retail did not immediately respond to a request for comment.