Emeryville’s Public Market is bought by a real estate investment venture

Thu, 15 Nov 2012 08:44:32 +0000

EMERYVILLE — The Public Market Emeryville, a prominent retail and office center in the East Bay, has been bought for about $54 million by a group of realty investors, an indication the Bay Area’s retail sector is doing well.

The 270,000-square-foot complex, located on Shellmound Street near the Interstate 80 and Powell Street interchange in Emeryville, was bought by San Francisco-based City Center Realty Partners and New York City-based Angelo Gordon.

Over time, the new owners intend to add another 800,000 square feet that will include retail and offices. At present, Public Market Emeryville consists of stores, restaurants and offices.

Terms of the sale weren’t officially disclosed. However, people with knowledge of the transaction and the market estimated that Public Market Emeryville was bought for a price somewhere in the range of $52 million to $60 million.

The purchase of the center came after an extensive renovation engineered by TMG Partners and Rockwood Capital, the group that sold the retail and office complex.

“Our renovation of the Public Market has created a strong platform for continued innovative development of the property with an infusion of new capital and enthusiasm for a dynamic Emeryville,” said Michael Covarrubias, TMG’s chief executive officer.

One of the biggest challenges the center faced was the abrupt exit of one of its prime retailer, Borders Books. The bookstore imploded during the

recession and vacated numerous store sites, including Emeryville.

To fill the space, TMG found robust replacements in Urban Outfitters and Guitar Center.

“Emeryville is a thriving city,” said Mark Stefan, an executive with City Center Realty Partners. “Public Market is a great place to expand a unique mixed use community into a model sustainable infill project.”

The purchase points to a strong retail market in the Bay Area, which enjoys a stronger job market than the nation overall.

“There absolutely is confidence in core retail markets,” said Solomon Ets-Hokin, a senior vice president with Colliers International, a commercial realty brokerage. “Prices are good and there is unprecedented demand for good retail property. And Emeryville is such a great retail node.”

Brokers believe that plenty of cash is sitting on the sidelines, waiting to buy top-notch retail projects.

“Emeryville is clearly one of those markets that will have the growth potential that investors want, that will provide a respectable return in this economy,” said John Sechser, a senior vice president and primary retail agent for the Walnut Creek office of Transwestern, a realty firm.

In the East Bay, investors have a tentative deal to buy the Safeway-anchored Pleasanton Gateway retail center in Pleasanton, near the Alameda County Fairgrounds on Bernal Road. And downtown Pleasant Hill is going up for sale, with buyers starting to line up to grab that choice property.

“Pension funds, private opportunity investors, real estate investment advisors, all want infill retail that’s in a market protected from a lot of competition,” said Kevin Van Voorhis, a Colliers senior vice president.

Contact George Avalos at 925-977-8477. Follow him at twitter.com/george_avalos.

Article source: http://www.mercurynews.com/real-estate/ci_21996696/emeryvilles-public-market-is-bought-by-real-estate

Swift Realty Partners’ One Concord Center Quickly Filling Up

Sun, 24 Jul 2011 09:05:29 +0000

Walnut Creek, CA, July 24, 2011 –(PR.com)– Cornish Carey Commercial Newmark Knight Frank announced that Swift Realty Partners’ One Concord Center is exceeding the firm’s expectations growing its tenant roster. In just 7 months, 14 lease transactions totaling 111,615 square feet (sf) were completed bringing the occupancy rate of the 358,589 sf property from 43.2% to 78.3%. Breck Lutz and Alex Grell of Cornish Carey Commercial Newmark Knight Frank’s Walnut Creek office represent Swift’s One Concord Center for lease.

Swift Realty Partners was founded in July of 2010 by former President and Chief Executive Officer of Blackstone’s Equity Office Properties Christopher Peatross. One Concord Center, purchased in late September of 2010, was Swift’s first investment. Several large tenants had vacated the 15-story Concord property located at 2300 Clayton Road prior to the sale and upon purchase, 203,821 sf remained available for lease.

“I am extremely pleased with the pace at which One Concord Center is filling up,” said Swift Founder Christopher Peatross. “I targeted this building as Swift Realty Partners’ first investment because of its incredible potential. With strong ownership and leasing teams in place, One Concord Center is proving itself to be the choice destination for East Bay and Bay Area companies.”

Recent lease transactions at One Concord Center include:

• Sutter Health leased a full floor – 24,960 sf – and will move a finance operation currently based in San Francisco to Concord.
• Swinerton Corporation leased a full floor – 24,960 sf –and will move local operations to the new property.
• Towill Inc. leased 15,680 sf and will expand its 9,238 sf Concord operations and relocate a San Francisco-based group to the new space.
• Progressive Insurance renewed its 11,208 sf lease at the property.
• TRC Environmental leased 9,789 sf and will move local operations to the new property.
• Jacobs Engineering leased 7,987 sf and will move Walnut Creek operations to One Concord Center.
• Rimkus Consulting, Pacific Pension, Business Thru Government, Inc., Closure Solutions, Inc., Validus Corporation, Carotrans International Inc., Lamar Advertising Company and Pacer each signed leases of less than 4,000 sf at One Concord Center.

One Concord Center is Concord’s premier Class A office building. The 358,589 sf 15-story property is located immediately adjacent to the Concord BART station. Occupants also enjoy access to numerous on-site amenities including a fitness facility with showers, a full-service cafe and a large tenant conference center. The building lies within walking distance to the downtown’s numerous restaurants, services and hotels. Other significant tenants at One Concord Center include United Health Group and Cardno Entrix.

“While the Concord commercial real estate market is gradually improving, we are experiencing a tremendous occupancy surge at One Concord Center because of the quality of the space, its location and stable ownership,” said Cornish Carey Commercial Newmark Knight Frank Senior Vice President Breck Lutz. “We anticipate the building to be fully leased in 2012.”

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A dominant regional real estate force since 1935, Cornish Carey Commercial partnered in 2010 with Newmark Knight Frank, one of the largest independent real estate service firms in the world, to become Cornish Carey Commercial Newmark Knight Frank. Regionally, more than 280 agents in 13 strategically located offices throughout Northern California create a powerful combination of people and services that uphold Cornish Carey Commercial Newmark Knight Frank core values of integrity and knowledge. Headquartered in New York, Newmark Knight Frank and London-based partner Knight Frank operate from over 220 offices in established and emerging property markets on six continents. With a combined staff of 7,300 and revenues last year exceeding $861 million, this major force in real estate is meeting the local and global needs of owners, tenants, investors and developers worldwide. For more information, visit: www.ccareynkf.com

Article source: http://www.pr.com/press-release/341018

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Emeryville’s Public Market is bought by a real estate investment venture

Swift Realty Partners’ One Concord Center Quickly Filling Up