Two-tenant San Francisco-area retail property sells for $53.165M
JLL Capital Markets completed the sale of the East Palo Alto retail center leased to resilient investment-grade tenants
LOS ANGELES, May 20, 2021 – JLL Capital Markets announced today that it has closed the $53.165 million sale of Gateway 101, a 92,110-square-foot retail center fully leased to two national, investment-grade tenants in East Palo Alto, California.
JLL marketed the property on behalf of the seller, Regency Centers Corporation. A private foreign investor acquired the asset.
Gateway 101 is home to Target and Nordstrom Rack, both investment-grade tenants that offer stable cash flow for the new owner. The center, which originally opened in 2000 and was renovated in 2017, is part of a larger 430,000-square-foot retail property with a regional draw throughout the San Francisco Peninsula and South and East Bays.
Located at 1771 East Bayshore Rd., the property holds an irreplaceable position at the convergence of University Avenue and Highway 101, making it visible to more than 455,736 vehicles per day. The center is only two miles from Stanford University and surrounded by “blue chip” technology companies. Additionally, the property benefits from a population of more than 118,000 residents who earn an average annual household income of $200,514.
The JLL Capital Markets team that represented the seller was led by Bryan Ley, Eric Kathrein and Tony Ensbury.
“Gateway 101 was a terrific sale for all sides and represents the strong demand of foreign capital coming back to the United States in 2021 and looking for long-term core retail assets in strong submarkets,” Ley said.
JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment advisory, debt placement, equity placement or a recapitalization. The firm has more than 3,700 Capital Markets specialists worldwide with offices in nearly 50 countries.
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Jones Lang LaSalle Americas, Inc. ("JLL") is a real estate broker licensed with the California Department of Real Estate, license #01223413.
About JLL
JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. JLL shapes the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, amazing spaces and sustainable real estate solutions for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $16.6 billion in 2020, operations in over 80 countries and a global workforce of more than 91,000 as of March 31, 2021. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.
Regency Centers is the preeminent national owner, operator and developer of shopping centers located in affluent, infill suburban trade areas. Their portfolio includes thriving properties merchandised with highly productive grocers, restaurants, service providers and best-in-class retailers that connect to their neighborhoods, communities and customers. Operating as a fully integrated real estate company, Regency Centers is a qualified real estate investment trust (REIT) that is self-administered, self-managed, and an S&P 500 Index member. For more information, please visit RegencyCenters.com.