The 77,700-square-foot Mountain Shadows Plaza shopping center in Rohnert Park sold recently to a Eureka-based investment group.
Corte Madera-based Argonaut Investments, which also owns the Rite Aid-anchored North Bay Centre in Rohnert Park, sold the Pacific Market-anchored center to Mountain Shadows Investors LLC for $15.2 million. Capital Pacific brokered the sale.
North Coast Investors Group, which put together the acquisition group, has raised $60 million from about 120 mostly North Coast investors to acquire $200 million in real estate. A year ago the company dodged an investment bullet when it sold its 13 single-tenant properties nationwide and started putting the money into shopping centers to spread risk, according to President and CEO Jeff Boyd. The tenants in those previous properties are now in bankruptcy.
Mountain Shadows, which is 90 percent occupied and has a new 4,700-square-foot addition to fill, is part of a new effort to redeploy investment money in California property as cap rates soar in a tight lending market, according to Mr. Boyd. His group made the deal by assuming the loan with $9 million in sub-6-percent financing through Umpqua Bank and putting forward cash for the rest.
North Coast Investors Group also developed Cloverleaf Estates, a 36-unit clustered condominium project in Cloverdale, in 2006. Thirty-four of the units are occupied under leases for $1,100 to $1,400 a month. Mr. Boyd said the units he owns there come within $200 per unit each month of paying the mortgage, what he calls an acceptable coverage until what he hopes will be price rebound in five years.
The reorganization-related shutdown of Mervyn’s Department Stores locations, including six in the North Bay, coming after local closures of other large stores such as CompUSA and Linens n’ Things, was to leave largely 80,000-square-foot holes in major shopping centers early next year. But then came Kohl’s.
Wisconsin-based Kohl’s Department Stores, which has locations in Santa Rosa, Petaluma, Vacaville and Vallejo, is taking over leases for Mervyn’s stores in San Rafael, Napa and Ukiah as part of a $6.25 million joint bankruptcy court bid with retail chain Forever 21 for leaseholds on 46 Mervyn’s stores in several states, according to court documents and the winning bidders.
Among the 31 Mervyn’s locations Kohl’s picked stores at Parkway Plaza, in Napa, Northgate Mall in San Rafael and Pear Tree Center in Ukiah. Kohl’s, which has 1,008 stores nationwide, said it plans to open 50 stores next year, including the 31 Mervyn’s locations.
North Bay Mervyn’s stores that still need replacement tenants are in the Westfield Solano mall in Fairfield, in Santa Rosa Plaza mall in Santa Rosa and at 389 S. McDowell Blvd. in Petaluma. Marcquarie DDR and Developers Diversified are the landlords of the Fairfield and Santa Rosa stores.
After more than a decade of work by two different developers with two different stores, there’s finally a drug store in southwest Santa Rosa. Pennsylvania-based Rite Aid Corp. opened a nearly 14,000-square-foot store at 955 Stony Point Rd. on Dec. 5.
A week later, Surama Hospitality LLC of Dublin purchased the property from Sonoma Associates I for $6.7 million at a capitalization rate of 6.88 percent. Connie Bradley of Orion Partners represented the sellers. “Dan” Shah of Alliance Capital Real Estate represented the buyer.
Rite Aid signed a 20-year lease with up to 30 years of renewals. Pepe’s Mexican Restaurant has signed a five-year lease for a new 380-square-foot kiosk between Rite Aid and the restaurant.
Commercial Real Estate People
Peter O’Brien, who had two stints as a top commercial real estate agent for Orion Partners Ltd. in the past several years, joined Sanford, Jigalin & Seymour, a financial planning and wealth-management firm with offices in Santa Rosa, Novato and San Francisco.
Alice Seymour, Ylisa Sanford Seymour and Andrei Jigalin have a franchise from Minneapolis-based Ameriprise Financial.
Mr. O’Brien, who started his career as a Wall Street trader and then a Manhattan building broker, said he wanted to provide clients a comprehensive range of services beyond just real estate.
Submit items for this column to Jeff Quackenbush at email@example.com, 707-521-4256 or fax 707-521-5292.
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