Shopping center

Danville mall brings in $20 million

Bradley Blake and Brad Griggs with 115 Town and Country Drive (Blake Griggs Properties, Google Maps)

The demographics helped offset recent retail trends to hold a mall in the affluent suburb of Danville toward the high end of the Bay Area market during a recent sale.

The 67,192-square-foot Village mall at 115 Town and Country Drive fetched $20.4 million — about $303 per square foot — when local developer and investor Blake and Griggs Properties bought it from Montair Associates.

Danville is one of the wealthiest cities in the United States, with an average household income of $220,000. The Village Shopping Center averages about 22,000 customer visits per day, according to Vince Schwab, agent Marcus and Milichap who represented the seller.

The selling price on the Shopping Village compared to an average selling price of $374 per square foot for commercial properties in the East Bay during the first quarter was $374, according to a Kidder report. Local deals have been extensive, with a recent high on DJM Capital’s acquisition of Bridgeside Mall in Alameda for $543 per square foot earlier this month, a price determined in part by retail demand’s “daily needs based primarily on goods and services. . Grocers, pharmacies, doctors’ offices and other such service providers have been strong during the pandemic and have the potential to fare better in the face of inflation.

While Danville has tenants offering essential services, it also includes a music school, dance studio and other businesses focused on discretionary spending, according to a report by Marcus and Millichap.

“Given the strong demographics of the submarket and continued tenant demand, this was a highly competitive sale process that led to several strong offers to acquire the Village Shopping Center,” said.

The Village Mall, located at 115 Town and Country Drive, is 67,192 square feet and has an occupancy rate of 97%. The mall currently has 32 tenants, ranging from essential services to restaurants and office space. Some of the notable tenants include: Fitness 19, Danville Chamber of Commerce and Discovery Counseling Center.

“The Village Mall is a mainstay of the local Danville community, with a diverse roster of tenants from independently owned and operated businesses that have weathered the effects of the pandemic,”

This Danville deal is even more than other recent deals. An Asian-themed mall closed at $209 per square foot, which was below the East Bay average. A more recent deal in the Silicon Valley market saw a New York-based investor pay around $270 per square foot for The Plant Shopping Center, a large outdoor mall in San Jose.

Recent data indicates that East Bay will continue to experience a revitalized retail market, with average asking rent up 12% and new construction up 35%, according to the Kidder report.