SAN JOSE -- The Plant shopping center, a busy retail complex in central San Jose whose anchors include Target and Best Buy, is expected to be bought for $203 million, an indication that investors hunger for South Bay retail.
"There are way more buyers than there are quality retail properties to buy," said David Taxin, a partner with Meacham/Oppenheimer, a commercial realty firm that specializes in the retail market. "We are seeing multiple offers for any retail property that hits the market that is decent."
The buyer is an affiliate of Arizona-based Cole Real Estate Investments. The seller is an affiliate of New York City-based Vornado Realty Trust.
Vornado bought The Plant retail complex for an estimated $120 million to $150 million in 2010, according to public records and sources familiar with the commercial property market in the area. The center is located at the corner of Monterey Road and Curtner Avenue.
Following repayment of the existing debt on the property, as well as closing costs, the net proceeds to Vornado will be $93 million, Vornado said in a regulatory filing with the Securities and Exchange Commission.
"The property was constructed in 2008 and is approximately 95 percent leased," Cole Real Estate stated in an SEC filing.
The Plant sale is expected to be completed sometime around March 1.
Target, Home Depot, Best Buy, Toys R Us and Petsmart are among the primary anchors at the retail center.
"We haven't seen these kinds of property prices for retail in 25 years," Taxin said.
Contact George Avalos at 408-373-3556 or 925-977-8477. Follow him at twitter.com/george_avalos.