Commercial Real Estate: North Coast investment group buys Rohnert Park center

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.


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