Dealmaker: Marcus & Millichap Sells Two California Assets for $22M
Marcus & Millichap, Calabasas, Calif., sold a Gordon Biersch Brewing Co. facility and a 103,000-square-foot shopping center in California for a combined $21.6 million.
In San Jose, Marcus & Millichap sold the 130,000-square-foot Gordon Biersch single-tenant industrial property. M&M Associate Jeffrey Ida noted that a leased real estate investment property changed hands, not the ancillary brewery business.
“Due to the structure of the tenant’s lease, which provided multiple short-term extension options spanning 15 years, sourcing traditional financing was a challenge,” Ida said. “But we were able to procure an all-cash buyer who recognized the property’s long-term value potential. The sale closed at a sub 4.0 percent capitalization rate, which is rarely achieved by assets with non-S&P-rated tenants.”
Vincent Schwab, Senior Managing Director of Investments with Marcus & Millichap, said the building represents the brewing company’s sole manufacturing, bottling and distribution facility and noted that it operates around the clock. “The primarily automated facility produces 6,000 cases of beer per day, which amounts to over a million bottles of beer per week,” he said.
Ida, Schwab and Marcus & Millichap Executive Managing Director of Investments John Glass represented the seller and procured the buyer.
“The transaction offers new ownership a generational redevelopment opportunity with the potential to redevelop/re-tenant the entire parcel at the end of the lease term,” Glass said.
The facility in San Jose’s Japantown submarket occupies a 3.1-acre parcel just north of downtown San Jose in the Jackson-Taylor neighborhood.
In Hemet, Calif. in Riverside County, Marcus & Millichap sold multi-tenant retail asset Ramona Plaza for $11.1 million, or $108 per square foot.
Marcus & Millichap First Vice President of Investments Matt LoPiccolo, Senior Managing Director of Investments Mike James and Associate Matt Hardy represented the seller and procured the buyer.
“The new ownership benefits from 60 percent of the property’s in-place income from credit tenants and the shopping center’s value-add potential, as it is currently 85 percent occupied,” LoPiccolo said.
Ramona Plaza occupies the busiest intersection in the city with more than 30,000 vehicles passing by per day. A Grocery Outlet store anchors the property; other tenants include Planet Fitness, Dollar Tree and Little Caesar’s Pizza.
The transaction represents the fourth grocery-anchored center sale LoPiccolo completed in the last three years. The other three are: Naples Plaza, an 85,000-square-foot Chula Vista shopping center that sold for $18.5 million; National City Plaza, an 84,000-square-foot center in San Diego that traded for $14.8 million and 123,000-square-foot Copperwood Square in San Diego, which sold for $22.2 million.
