Regency Centers Acquires Iconic Shopping Center at The Pruneyard
July 01 2019 - 3:15PM
Today, Regency Centers Corporation (“Regency” or the “Company”)
(NASDAQ:REG), the preeminent national owner, operator, and
developer of shopping centers, has announced the acquisition of
258,000 square feet of prime Silicon Valley retail located in the
iconic mixed-use project known as The Pruneyard.
Originally built in the 1960s, The Pruneyard quickly became a
Silicon Valley landmark, evolving over the years and recently
undergoing a substantial renovation. Anchored by Trader Joe’s, it
is located at the highly-trafficked intersection of Campbell Avenue
and Bascom Avenue, adjacent to State Route 17. The Pruneyard sits
in close proximity to the West Valley’s most affluent
neighborhoods, drawing traffic from a significant portion of the
area. In addition to the retail portion, The Pruneyard also
features a mix of unowned uses that include three office towers
totaling 360,000 square feet and a 171-key hotel, which were not
part of the transaction.
“The Pruneyard is an iconic destination, and an opportunity to
be a part of something like this doesn’t come along very often,”
said Craig Ramey, Regency Centers’ Managing Director of the Pacific
Northwest, Colorado, and Northern California. “We’re aware of the
rich history of this center. This, coupled with a strong
merchandising mix and terrific amenities, aligns very closely with
the types of properties already in our portfolio. We want to ensure
that The Pruneyard continues to build on its recognized position as
a premier retail destination in Silicon Valley.”
Regency currently owns and operates 28 properties within the Bay
Area, including The Pruneyard. The Regency team is led by local
industry veterans who are active members of their community,
committed to the betterment of properties that serve the
community.
Regency acquired the center directly from a joint venture
between Ellis Partners and investment funds managed by an affiliate
of Fortress Investment Group LLC (“Seller”). Ellis Partners is
retaining a minority interest in the new ownership and will
continue to provide operating services, leveraging its deep local
knowledge, expertise, and affiliations.
“We are pleased to collaborate with the Regency team as the
vision for The Pruneyard is approaching full realization,” said Jim
Ellis, Managing Principal, for Ellis Partners. “We are grateful to
the Fortress team for their partnership over the last five years.
Their support and commitment to the entire mixed-use project has
been a linchpin to our ability to revitalize The Pruneyard for the
Campbell community,” said Melinda Ellis Evers, Managing Principal
for Ellis Partners.
“Regency brings a strong track record of experience and
performance, and has a deep appreciation for the special nature and
history of this property. We are confident in the continued
successful operation of this center under Regency and Ellis
Partners,” said Noah Shore, Managing Director and Head of Retail
for Fortress.
The HFF investment sales team, led by Bryan Ley and Eric
Kathrein, represented the Seller in the transaction. The purchase
price for the retail portion of The Pruneyard was $212.5M.
About Regency Centers
Corporation (NASDAQ: REG)
Regency Centers is the preeminent national
owner, operator, and developer of shopping centers located in
affluent and densely populated trade areas. Our portfolio includes
thriving properties merchandised with highly productive grocers,
restaurants, service providers, and best-in-class retailers that
connect to our neighborhoods, communities, and customers. Operating
as a fully integrated real estate company, Regency
Centers is a qualified real estate investment trust (REIT)
that is self-administered, self-managed, and
an S&P 500 Index member. For more information, please
visit regencycenters.com.
About
Fortress
Fortress Investment Group LLC is a leading, highly
diversified global investment manager. Founded in 1998, Fortress
manages approximately $40 billion as of March 31, 2019 on behalf of
over 1,750 institutional clients and private investors worldwide
across a range of credit and real estate, private equity and
permanent capital investment strategies.
About Ellis
Partners
Ellis Partners is a privately-owned commercial real
estate investment and development company founded in San Francisco
in 1993. Working with a small group of long-standing private and
institutional partners, the firm has successfully acquired and
developed assets valued at over $3 billion. Ellis Partners has a
long track record of success in the acquisition, entitlement,
development, renovation and repositioning of office, industrial,
retail, residential and mixed-use properties in Northern
California. For more information regarding Ellis Partners, please
visit ellispartners.com.
Barry ArgalasSenior Vice President, National
Transactions904-598-7000BarryArgalas@RegencyCenters.com
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