A shopping center with a diversity of tenants has changed hands in the East Bay suburb of Brentwood, public records show.
GSG partners sold the Sand Creek Crossing Mall to Sierra Landmark for $53 million, or $495 per square foot.
Sand Creek Crossing is located at 2400 Sand Creek Road and has an area of 101,922 square feet. The mall accommodates a number of tenants, from groceries to household goods to restaurants. The list of retailers includes Ross Dress for Less, TJ Maxx, Home Goods, Raley’s, Party City, Krispy Kreme, Round Table Pizza, See’s Candies, Dickey’s Barbeque Pit and Fit Republic.
The East Bay retail market remained stable as consumers resumed in-person shopping following the pandemic. According to a second quarter report from Cushman & Wakefield, retail vacancy fell in the first quarter, but remained the same at 6.8% in the last quarter.
Contra Costa County, where Brentwood is located, saw more fluctuation with the vacancy rate, posting 7.8% in the second quarter, compared to 8% in the previous quarter.
Another positive trend for the retail market is that asking rents rose 13.5% from a year ago to $32.83. No construction was completed in the second quarter and the only project under construction is the 31,000 square foot Tivoli Plaza in Dublin.
As the retail market continues to rebound from the pandemic, inflation has caused consumers to favor everyday spending over discretionary purchases, according to a report by Marcus and Millichap.
“Well-located, need-centric commercial properties that have shown resilience during the health crisis are expected to attract a wider pool of buyers,” the report said.
Grocers saw the largest increase in spending, partly due to inflation. Restaurants also appear to be doing well, with more customers deciding they are more comfortable eating again. They saw a 9% increase in foot traffic year over year and an 18% increase in sales, according to the report.
The focus on daily needs correlates with transaction types for East Bay malls. DJM Capital acquired the Bridgestone Mall in Alameda, which is anchored by grocery stores and restaurants, for $543 per square foot. The Bayfield Center in San Leandro cost $71 a square foot and is anchored in department stores. The new owners plan to redevelop the site into a life sciences campus.