East Bay retail centers bought for more than $100 million
LAFAYETTE — Two retail centers at prime locations in the East Bay city of Lafayette have been bought by a veteran real estate investment firm from the Midwest in a deal that tops $100 million.
La Fiesta Square and Lafayette Mercantile were purchased by affiliates controlled by SITE Centers, a real estate investment trust, according to documents filed on May 3 with the Contra Costa County Recorder’s Office.
Ohio-based SITE Centers paid a combined $103.2 million for the two Lafayette retail centers, the county public records show.
The deals suggest that investors still hunger for retail centers at choice locations in the Bay Area.
The two Lafayette complexes were sold by affiliates controlled by Stephen Cortese and Ann Cortese, according to the public records. The pair are the top executives with Cortese Properties, state business filings show.
On May 4, one day after selling the Lafayette properties, the Cortese-controlled affiliates bought a vast tech and advanced manufacturing building in North San Jose whose tenant is battery maker QuantumScape.
The Cortese firm paid $103.8 million for the San Jose site at 1710 Automation Parkway and obtained a $45 million Wells Fargo Bank loan to finance the purchase of the building, Santa Clara County records show.
La Fiesta Square, which totals 74,300 square feet and consists of five retail buildings, was bought by SITE Centers for $60.7 million.
Lafayette Mercantile, which totals 56,600 square feet and is a retail and office complex, was bought for $42.6 million.
Brokers Nicholas Bicardo and Steven Golubchik with Newmark, a commercial real estate firm, arranged the property deal.
“This portfolio represented a once-in-a-generation opportunity to gain immediate scale through acquiring the dominant retail asset and best mixed-use property two blocks apart from each other in one of the Bay Area’s most affluent neighborhoods,” said Bicardo, a Newmark vice chairman.
SITE Centers purchased the two retail complexes in an all-cash deal, the county records show.
La Fiesta Square is “in the heart of downtown Lafayette,” according to Newmark.
Lafayette Mercantile features “marquee ground-floor retail” that offers “upscale food, beverage and retail services,” Newmark stated.
Both properties are within walking distance of the Lafayette BART station, according to Newmark. The retail centers are also adjacent to State Route 24, a major freeway that links Oakland and Walnut Creek.
The quality of the centers generated plenty of attention from potential buyers, according to Newmark.
“We received significant investor interest from all sources of capital, including institutional and private,” Bicardo said.
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