Hanley Investment Group has completed the sale of Pacific Town Center, a 143,217 square foot shopping center anchored by a high-performing Smart & Final Extra! store in Stockton, California.
Built on a 10.08 acre site in 2003, Pacific Town Center is situated at 616-760 West Hammer Lane, at the southeast corner of one of Stockton's busiest intersections—the signalized junction of Hammer Lane and Pacific Avenue (with 58,000 cars per day).
The center boasts excellent visibility with two large pylon signs and one monument sign on Hammer Lane and Pacific Avenue.
With 58 per cent vacancy, it also presented a unique repositioning opportunity.
Hanley Investment Group Vice Presidents Sean Cox and Alexander Moore, along with Executive Vice President Kevin Fryman, represented the seller - a private investor based in Sacramento.
The buyer, San Diego-based real estate firm Brixton Capital, represented themselves.
Cox says: “Attracting 18 offers from mid-market investors and private investors, we maximized pricing by securing a 1031 exchange buyer who recognized the property’s exceptional value-add investment potential.
"The buyer has the opportunity to lease-up a 49,835-square-foot former Toys ‘R’ Us, a 30,207-square-foot former T.J.
Maxx, and 2,900 square feet of shop space, to bring new retail offerings to the community.
With separate legal parcels, the buyer has multiple exit strategies at their disposal.”
The property is strategically located within a dense retail corridor at the confluence of two major arterial retail thoroughfares in Stockton
Moore adds: "The property is strategically located within a dense retail corridor at the confluence of two major arterial retail thoroughfares in Stockton—Hammer Lane and Pacific Avenue.
"Pacific Avenue is the city's busiest north-south thoroughfare, providing access to Downtown Stockton, San Joaquin Delta College, University of the Pacific, Weberstown Mall, Sherwood Mall, Lincoln Center, and Pacific Town Center.
Hammer Lane is home to major retailers, including Costco, Walmart, Lowe's, Home Depot, Food4Less, Walgreens, and numerous car dealerships like Tesla, Ford, Chevrolet, Dodge Chrysler Jeep Ram, Buick, Kia, and Hyundai."
"Smart & Final Extra! has been a tenant at the center since 2009," says Fryman.
"In 2018, Smart & Final invested one million dollars in upgrades at their own expense and extended their lease for another 10 years, demonstrating their commitment to this location."
Smart & Final operates 254 stores under the Smart & Final Extra! and Smart & Final banners in California, Arizona, and Nevada.
In May 2021, Bodega Latina Corp., the owner of the Fiesta Market and El Super chains, acquired Smart & Final for US $620 million.
The chain was ranked #34 among the Top 50 Food and Grocery Retailers by Supermarket News in 2022.
Other tenants of Pacific Town Center include Aaron's, Concentra Health Services, Panda Express, Subway, Western Dental, and neighborhood-serving retailers and restaurants.
Hanley Investment Group has completed sales of similarly anchored shopping centers in the Central Valley region with a total value of US $583 million.
