NCP Enterprise JV Buys Oakland Shopping Center
- Dec 08, 2016
Oakland, Calif.—Northstar Enterprise Opportunity Fund I LP (NCP Enterprise), in a joint venture with Western Avenue Capital, has acquired Foothill Square Shopping Center, a 120,000-square-foot anchored retail center in Oakland, Calif.
“We love Oakland. It’s a derivative of the San Francisco market and we think that assets like this aren’t getting bid up too high by major institutions,” Peter Auerbach, NCP Enterprise’s co-founder & CIO, told Commercial Property Executive. “We have a phenomenal partner in Western Avenue and we think we have a unique piece of real estate in an area that’s on the rise.”
Originally constructed in 1962, the property underwent a major renovation between 2013 and 2016, where it was both remodeled and expanded.
According to Auerbach, the joint venture seeks to stabilize the asset for the long term and benefit from the attractive going in yield and basis.
“We knew there was room to improve the asset,” he said. “We like to invest in things that produce cash flow for our investors while we’re improving them.”
Located at 10700 MacArthur Blvd., strategically positioned adjacent to the MacArthur Freeway, Foothill Square Shopping Center is the only major grocery-anchored retail center with direct access along Interstate 580 for eight miles north and four miles south.
“The acquisition presents a unique opportunity to stabilize and reposition a cash flowing asset in an infill community in the Bay Area,” David Kasirer, Western Avenue Capital’s partner, said in a prepared release.
At the time of the sale, Foothill Square Shopping Center was 95 percent leased to national and regional tenants including FoodsCo (shadow), Ross Dress for Less, Wells Fargo, Davita, Rainbow and a Head Start school, in addition to multiple leases negotiated during the acquisition process.
“One of our mottos internally is ‘Doing well by doing good,’ and empowering people and creating communities,” Auerbach said. “The tenant base in this has schools, a bingo parlor, a community center… so we have that feeling if you treat the tenants well, you are doing something good.”