Loja Real Estate Buys Shopping Center in Tracy for $15.25MM 8/10
Loja Real Estate Buys Shopping Center in Tracy for $15.25MM
Walnut Creek-based Loja Real Estate has acquired the 86,943 square foot Tracy Corners Shopping Center in Tracy for $15.25 million. The asset is located at 770-780 Clover Road and 3001-3323 North Tracy Blvd.
The buyer of the property was represented by the Walnut Creek office of Transwestern, and according to the broker, the sale is indicative of retail opportunities that are available beyond the core urban markets. “I think that this transaction shows that capital sources are willing to go beyond the close-in markets of the San Francisco Bay Area for retail assets, and that there are attractive returns to be had for retail properties in the secondary and tertiary markets,” says Michael Cisternino, a senior vice president with Transwestern in its Walnut Creek office. He and Kyle Snyder, an associate with Transwestern, represented the buyer in the transaction.
The real estate firm declined to comment on what the cap rate was in this transaction. According to sources that track cap rates on retail properties, the property in Tracy was bought at a 7.3 percent cap rate, a return based on the property’s current net operating income.
The seller of the property was a privately held real estate company.
The property is a grocery-anchored shopping center. The lead and anchor tenant is Mi Pueblo Food Center, a Latino grocery store. The other main tenants are Harbor Freight Tools and O’Reilly Auto Parts. “I think that this property is ideally located with it being unlikely that another competing property could be developed nearby,” said Cisternino.
The property is located just off Highway 205 and is situated between two major retail properties, the Prime Outlets shopping center and the West Valley Mall.
Loja Real Estate is a buyer of retail real estate throughout the United States, according to its Web site. It has owned other properties in the San Francisco Bay Area and in Seattle. The company buys for investors that it represents through commingled funds, joint ventures and separate accounts.
