SAN JOSE, Calif.--(BUSINESS WIRE)--A partnership between Pacific Retail Capital Partners and Silverpeak Real Estate Partners announced today that it has acquired the 1.4 million-square-foot Eastridge super-regional mall in San Jose. The more than $200 million acquisition was made in an off-market transaction with General Growth Properties (NYSE:GGP). Eastridge is a major regional destination with more than 150 shops, restaurants and entertainment venues in this thriving Silicon Valley market.
“Eastridge is an exceptional property that serves a large market. We will implement a strategy that will build upon GGP's past leasing efforts and will continue to improve on the property’s retail and restaurant mix,” said Steve Plenge, managing principal of operating partner Pacific Retail Capital Partners. “Concurrent with the acquisition, a lease was executed with H&M, a fashion retailer that is an ideal fit with the market that is comprised largely of young professionals and families.”
Eastridge is a two-story, enclosed super regional mall set on 113 acres in eastern San Jose bounded by Tully Road, East Capitol Expressway and Quimby Road. In 2007, General Growth Properties completed an extensive $140 million expansion and renovation of the mall that included adding AMC Theatres and a comprehensive update to the existing property.
Among the center’s distinctive mix of retail, restaurant and entertainment destinations are a 15-screen AMC Theaters, Round 1 Bowling and Amusement, Barnes & Noble, JCPenney, Macy’s, Sears, Forever 21, Tilly’s, Bath & Body Works, Victoria’s Secret, Chili’s, Red Robin and Olive Garden. H&M is anticipated to open in the fall of 2016.
“Adding H&M is part of a strategic leasing plan that will ensure that Eastridge meets the demands of the more than one quarter of a million potential customers that live within three miles,” noted Constantine Tujios, senior vice president, Silverpeak Real Estate Partners. “To further enhance the center’s guest experience and appeal as a destination we also will be implementing a program of property improvements that will create an inviting and comfortable environment.”
The partnership, drawing on Pacific Retail’s experience in updating and repositioning retail centers of all types, will invest approximately $15 million in renovations to the mall.
Eastridge is a key addition to Pacific Retail’s growing portfolio of significant retail centers across the country. In October, 2015 Pacific acquired the high-profile 458,971-square-foot Paseo Nuevo open air center in Santa Barbara, CA located on State Street, a well-known shopping and dining district and visitor destination. Pacific Retail has a strategic acquisition program that identifies select, well-performing markets and retail properties where it can apply its expertise operating experience in enhancing and repositioning centers to increase appeal to the local community and improve performance.
Pacific Retail will oversee the operations, leasing and renovation activities at Eastridge. BMW Realty Advisors, led by co-founder and principal Bob Baker, will handle leasing. Additional information on Eastridge Center can be found at www.eastridgecenter.com.
About Pacific Retail Capital Partners
Pacific Retail Capital Partners is a fully integrated, entrepreneurial organization with an unparalleled depth of knowledge in all aspects of retail real estate. Its team of executives and strategic partners draw on decades of experience with major national shopping center owners to deliver top-tier service as an operating partner and provide efficient oversight of the company's own portfolio. Pacific Retail's broad-based talent is versed in multiple disciplines from investment and development, which enables the company to quickly assess market opportunities, to management, leasing and marketing which allows it to effectively control costs and maintain the quality of its properties. Based in Southern California, the company operates nationally with a particular emphasis on large regional malls. Its investment and management portfolio includes the West Oaks Mall in Houston; Yorktown Center in suburban Chicago; Colonie Center outside Albany, New York; South Towne Center in Sandy, Utah; Queen Ka’ahumanu Center on Maui, Hawaii; and Paseo Nuevo in Santa Barbara, California. To learn more visit www.pacificretail.com
About BMW Realty Advisors
BMW Realty Advisors is a commercial property consulting and brokerage firm specializing in providing owners of retail properties with the expertise required to maximize value. Their strategies and actions prepare a property for its next capital event. Based in Southern California, they have worked on properties around the country as an investor and or providing leasing and development services for properties such as Park Lane- Dallas, TX, The Landing, Renton, WA, The Point in El Segundo, CA. To learn more visit www.bmw-re.com
About Silverpeak Real Estate Partners
Silverpeak Real Estate Partners is a full-service, diversified real estate investment business with over $10 billion of gross real estate assets under management. Silverpeak acquires and manages real estate on behalf of commingled funds, separate accounts and for its own account. Since 2010, Silverpeak, together with its operating and capital partners, has invested in more than 100 transactions aggregating over $5 billion of gross real estate asset value in the US. The Firm has invested in office, retail, multifamily, hotel and other asset classes. In addition, the Firm recently formed Silverpeak Real Estate Finance, in partnership with Elliott Management Corporation, to make commercial real estate loans throughout the US. www.silverpeakre.com/