According to a recent article in GlobeSt.com, Excel Trust Inc. has acquired the 473,640-square-foot Gilroy Crossing in Gilroy, CA for $68.5 million.
The Acquisition:
The Gilroy center, of which 325,431 square feet is owned, generates annual net operating income of approximately $5.3 million, according to Excel. The property is anchored by Target (non-owned), Kohl’s, Sports Authority, Ross Dress For Less, Bed Bath & Beyond, Michaels, and PetSmart and is currently 99% leased. There are also a variety of restaurants surrounding the center such as, Mama Mia’s, Tung Kee, Carino’s Italian and Panera Bread. My kids love the treats (cookies) at Panera Bread.
Buyer Profile:
Excel Trust, Inc. is a retail focused real estate investment trust that targets value oriented community and power centers, grocery anchored neighborhood centers and freestanding retail properties. Excel Trust trades publicly on the NYSE under the symbol EXL. The current management team has over 30 years of experience in the real estate sector having overseen more than $4 billion in retail related acquisitions and developments.
Financing:
Using a combination of cash and shares, Excel assumed the existing mortgage of approximately $48.0 million which bears interest at 5.01%.
The Location:
The property is adjacent to Highway 101 in Gilroy, one of the fastest growing communities in the Silicon Valley. The city’s proximity to Silicon Valley and the Bay Area, as well as excellent access to housing and transportation, gives Gilroy a location advantage for growing industries.
Santa Clara County is a major employment center for the region, providing more than a quarter of all jobs in the Bay Area. Built in 2004, Gilroy Crossing is in a trade area with an average household income within a 3-mile radius is $91,420.
As a frequent patron of the Gilroy Crossing Center, I hope new ownership will result in continued growth and expansion for the city of Gilroy.
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