Q2 2012 San Jose, California Retail Property Sales Analysis

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Q2 2012 San Jose, California Retail Property Sales Analysis


Retail property sales increased during the second quarter but overall year-to-date remained off the pace seen in 2011. The four properties that changed hands during the quarter fetched a combined total of $68.8 million. The average selling price was high at $521 psf; the mean cap rate, at 10.4%, however, also was high. In the latest quarter’s largest sale, the largest in a year, American Realty Advisors paid Hunter Properties Inc. $46.55 million ($554 psf) for 84,000 square feet of the 229,000-square-foot @First community center in the @First mixed-use development in San Jose (a 145,000-square-foot Target store was not included in the sale). The sale closed in May at a 10.7% cap rate. The project, which completed construction in 2012 (see the Retail Space section) was 7.0% vacant at the time of sale.