TRACY, CA—Excel Trust, a San Diego-based REIT, has purchased multiple phases of Tracy Pavilion Shopping Center here for about $32 million.
The 404,721-sq.-ft. center is anchored by stores such as Home Depot, WinCo, PetSmart and Staples. The Home Depot and the WinCo are tenant owned and were not part of the sale. Marshalls, Ross, PetsMart and Staples occupy approximately 60 percent of the aggregate gross leasable area that was conveyed, and other tenants include Ulta, Anna’s Linens, Chase Bank, Rubio’s, Panda Express, Starbucks, Supercuts, UPS and Subway.
Kornwasser Shopping Center Properties, based in Los Angeles, developed the center. Lucescu Realty represented the interests of the unnamed sellers. "We expect core and core plus offerings to continue to garner the greatest demand due to the dearth of available inventory and the surplus of capital pursuing these types of offerings,” said Mark Lucescu, president of the firm. “Class B and C properties will continue to experience declining lease rates due to increasing vacancies and increasing competition from Class A assets as tenants trade up to higher quality locations with similar lease rates."