Vestar Lands $34M Refi for Bay Area Retail

Vestar has secured a $34 million refinancing loan for East Washington Place, a 205,958-square-foot retail center in Petaluma, Calif., according to Yardi Research Data information. Voya Financial provided the permanent note.

East Washington Place came online in 2013 at 401 Kenilworth Drive and consists of 10 buildings across a 20-acre site, the same source shows. Anchored by a 138,000-square-foot Target, the property is also leased to TJ Maxx & Home Goods, DICK’S Sporting Goods, Sprouts Farmers Market, PetSmart and Bath & Body Works.

The retail center is just off California State Route 101 and 39 miles south of downtown San Francisco. East Washington Place is across the street from two other shopping centers, namely the 135,700-square-foot South Plaza and the 196,000-square-foot North Plaza.

East Washington Place serves approximately 68,500 individuals within a 5-mile radius, as well as more than 26,500 households with average incomes of $158,720 per year, according to Vestar. The company owns another 37 retail properties in California, including 11 in the Bay Area.

The retail real estate landscape is set to continue to transform due to scarce space, supply-chain disruption and inflation. These challenges have, however, driven adaptive responses, such as store reconfigurations that enable refreshed tenant mixes and higher rents. Flexibility has become crucial, alongside strategic location selection and cost control on insurance and capital.