Sea Cliff Properties Completes 1031 Exchange
Colliers Negotiates $10.4 Million Exchange Acquisition of “Rare” Single-Tenant Big Box-Site in Upscale San Anselmo Occupied by Bay Area Grocer Andronico’s
SAN ANSELMO, Calif. – Dec. 9, 2015 – Colliers International has completed negotiations on a $10.4 million acquisition by investment firm Sea Cliff Properties of what brokerage officials are calling an “extremely rare” single-tenant retail site long occupied by Andronico’s Community Market in the tony Bay Area community of San Anselmo.
“We were able to bring a stable, net-leased investment property to Sea Cliff in a complex, tax-deferred 1031 exchange transaction,” said Colliers Vice President Bryan Webb who, along with Executive Vice Presidents James Devincenti and Brad Lagormarsino, represented Sea Cliff. “The limited number of ‘big box’ sites in this affluent community, coupled with consistently low vacancy rates among retail properties, made this an especially attractive acquisition for Sea Cliff.”
Andronico’s Community Markets, which caters to affluent consumers in upscale communities like San Anselmo, recently exercised a five-year, triple-net renewal option on the property, making the transaction even more valuable to the buyer, noted Webb. The seller was a private investment fund.
“To have a tenant with the stability and commitment of Adronico’s presented our buyer with one more reason to close this sale,” Webb said. “Coupled with the market’s recently signed NNN lease extension, and the fact that it has options for further extensions, made this a very sound long-term investment that met the immediate needs of the investor.”
The grocery chain, which has five locations in the Bay Area, is in the midst of renovating the property and has allocated some $1.1 million for upgrades. It is currently in the first of the two renovation phases, with phase two slated to begin in the first quarter of 2016.
Located at 100 Center Dr., the free-standing building occupied by Andronico’s totals nearly 22,000 square feet on a 53,557-square-foot pad. It was built in 1951 and has undergone a number of renovations over the years. Prior to the current renovation, the property was last upgraded in 1996.