LUCESCU REALTY Announces Sale of Multiple Phases of Tracy Pavilion Shopping Center in Tracy, California for Aggregate Price of $31.97 Million
NEWPORT BEACH, CA – February 1, 2013 – (RealEstateRama) — Mark Lucescu, President of LUCESCU REALTY, a market leading investment real estate services firm, announced today the sale of multiple phases of Tracy Pavilion Shopping Center in the City of Tracy in the Central Valley of California for an aggregate price of $31.97 million. The sale involved multiple selling entities. Tracy Pavilion Shopping Center was developed by affiliates of Kornwasser Shopping Center Properties, a private development firm, headquartered in Los Angeles, California. LUCESCU REALTY represented the interests of the sellers and procured the buyer, Excel Trust, a publicly-traded real estate investment trust, located in San Diego, Calif. This is Excel’s second acquisition in the Central Valley. During 2010 the Company acquired Park West Place in Stockton, California, for $92.5 million in a deal that was also brokered by LUCESCU REALTY.
Tracy Pavilion Shopping Center is a 404,721-square-foot Community Shopping Center, anchored by Home Depot, WinCo, Marshalls, Ross Dress for Less, PetsMart and Staples. The Home Depot and WinCo, which totaled 139,368 square feet and approximately 95,000 square feet respectively, were both tenant-owned and not a part of the sale. Marshalls, Ross, PetsMart and Staples occupy approximately 60 percent of the aggregate gross leasable area that was conveyed. The blue-chip tenant roster also included Ulta, Anna’s Linens, Chase Bank, Rubio’s, Panda Express, Starbucks, Supercuts, UPS and Subway.
“It’s an institutional quality piece of real estate, built by one of the premier real estate development companies in the western U.S.,” noted Lucescu. “For decades Kornwasser has been building centers of the highest quality and this property is no exception,” Lucescu further commented. “Kornwasser did a great job assembling the land, lining these tenants up and built a great center. Excel should do well with this acquisition as they continue their pursuit of high quality retail centers throughout the Central Valley.”
Located at the northwest corner of Naglee Road and Grant Line Road at Interstate 205, Tracy Pavilion Shopping Center is situated directly across the street from West Valley Mall, anchored by Target, Macy’s, Sears, JC Penney, Cinemark and Barnes & Noble and Tracy Marketplace, anchored by Walmart, Costco, Bed Bath & Beyond, Michaels and Petco. The center was built in 2002, and is adjacent to the on / off ramps to Interstate 205. The average household income within a 1-mile radius is $102,223.
According to Lucescu in discussing the latest market trends, “We expect core and core plus offerings to continue to garner the greatest demand due to the dearth of available inventory and the surplus of capital pursuing these types of offerings. Class B and C properties will continue to experience declining lease rates due to increasing vacancies and increasing competition from Class A assets as tenants trade up to higher quality locations with similar lease rates.”
LUCESCU REALTY is a market leading investment real estate services firm that uniquely combines major capital markets expertise with a complete and thorough understanding of real estate fundamentals to execute a wide range of services on behalf of its clients. Scope of services include sale transactions, advisory/consulting, debt/equity placement, market research and financial services. LUCESCU REALTY specializes in individual property and portfolio transactions, on behalf of public and private companies worldwide, involving neighborhood, community, power, and lifestyle centers, regional malls, and suburban and central business district office buildings. The hallmark of LUCESCU REALTY is its ability to maximize value through its exclusive focus on sale transactions, access to the full spectrum of both public and private investors, intimate local market knowledge through its in-house group of market analysts, tailored marketing strategies, and depth of capital market experience. LUCESCU REALTY is annually recognized as one of the most active brokerage firms in the United States. Headquartered in Newport Beach, California, LUCESCU REALTY has regional offices in Phoenix, Arizona and Las Vegas, Nevada and plans to open an office in San Francisco later this year. For more information, please visit www.lucescurealty.com.
