LAFAYETTE – Two retail centers in prime locations in the eastern Gulf city of Lafayette have been purchased by a veteran Midwest real estate investment firm in a deal worth more than $100 million.
La Fiesta Square and Lafayette Mercantile were purchased by the controlled subsidiaries of SITE Centers, a real estate investment trust, according to documents filed May 3 with the Contra Costa County Registry.
Public county records show that Ohio-based SITE centers paid $103.2 million to two Lafayette retail centers.
The deals indicate that investors are still hungry for retail centers in select locations in the Gulf region.
The two Lafayette complexes were sold by subsidiaries controlled by Stephen Cortez and Ann Cortez, according to public records. Government corporation filings show that the couple are the highest-ranking CEOs at Cortese Properties.
On May 4, one day after the sale of the Lafayette property, Cortez-controlled subsidiaries purchased a large Advanced Technology and Manufacturing industrial building in north San Jose that the battery maker QuantumScape leases.
Santa Clara County records show that Cortez paid $103.8 million to the San Jose site at 1710 Automation Parkway and secured a $45 million Wells Fargo Bank loan to finance the purchase of the building.
La Fiesta plaza, which has a total area of 74,300 square feet and consists of five retail buildings, was purchased by SITE Centers for $60.7 million.
Lafayette Mercantile, which has a total area of 56,600 square feet and is a retail and office complex, was purchased for $42.6 million.
Realtors Nicholas Picardo and Stephen Golubchik with commercial real estate firm Newmark arranged the property transaction.
“This portfolio represents a once-in-a-generation opportunity to gain instant scale by acquiring dominant retail assets and the best mixed-use properties within two blocks of each other in one of the most affluent neighborhoods in the Gulf region,” said Piccardo. Newmark Vice President.
SITE Centers bought the two retailers in an all-cash deal, county records show.
La Fiesta Square is “in the heart of downtown Lafayette,” according to Newmark.
According to Newmark, both properties are within walking distance of the Lafayette BART station. Retail centers are also located adjacent to State Route 24, a major highway connecting Oakland and Walnut Creek.
According to Newmark, the quality of the centers has aroused great interest from potential buyers.
“We have received a lot of interest from investors from all sources of capital, including institutional and private,” Picardo said.