BISON Continues Retail Investment Strategy With ‘Dominant’ Grocer Anchor Add
The ongoing quest for multi-tenant value-add retail acquisition opportunities with major grocery anchors in the West continues for BISON Partners. The latest includes the purchase of Bernal Plaza in Silicon Valley.
The firm secured $29 million in financing through JLL Capital Markets for the San Jose, California site, an open-air retail shopping center that spans 139,559 square feet on approximately 16 acres.
"This daily necessity-driven retail opportunity is a near quintessential match for our investment strategy,” Brad Rabel, founder at BISON, told GlobeSt.com.
“The opportunity to acquire Bernal Plaza in an off-market transaction, shadow anchored by a regionally dominant grocery anchor, at a compelling yield was consistent [was ideal].” “The sellers had been great stewards of the asset for many years, and we aim to continue the positive progress in the future.”
Forbright Bank provided the floating-rate acquisition financing for the deal at 101 – 125 Bernal Road, done jointly with PCCP.
The asset is shadow-anchored by Lucky Supermarkets, a top-performing grocer that attracts more than 700,000 annual visitors to the market at the confluence of the US-101 and 85 Freeway, where the average yearly household income is nearly $200,000.
The private seller owned the 94%-leased property for nearly 20 years. Other tenants are Ross, McDonald's and Shell. Plus, a Tesla Charging Station is included at the site.
BISON said it would invest in property-level improvements and improve the merchandising plan and tenant mix.
JLL Capital Market’s Debt Advisory team was led by Director Alex Olson, Managing Director Todd Sugimoto, Associate Lauren Sackler and Analyst Danny Ryan.
Outside of California, BISON targets value-add buys in California, Nevada, Utah and Arizona, according to the company.
Source: GlobeSt/ALM