Exclusive: Seagate Secures $45M for Bay Area Retail Center
John Hancock originated the loan for the 130,000-square-foot property.
Seagate Properties has refinanced Montecito Plaza Shopping Center, a 130,000-square-foot retail center in San Rafael, Calif., according to Yardi Matrix. John Hancock originated the $45 million loan.
The owner acquired the property in 1995 for $5.8 million, or roughly $45 per square foot, the same data provider shows. In 2016, the asset became subject to a $46 million loan, funded by Sun Life Financial.
Completed in 1958, Montecito Plaza is located at 209 Third St. on some 9 acres, just off U.S. Route 101 and has access to Interstate 580. Downtown San Francisco is less than 20 miles away.
Retailers Trader Joe’s and Petco anchor the property, with Chipotle, T-Mobile and UPS also part of the tenant roster. The shopping center has some 370 parking spaces.
Additional retailers in the neighborhood include Whole Foods, United Markets and Dollar Tree.
Favorable retail fundamentals ahead
Amid multiple economic distruptors, retail experts conveyed an optimistic future for the industry at this year’s ICSC Las Vegas conference. Transaction volume peaked at $15 billion in the first quarter of this year, according to JLL, with institutional investors making up 24 percent of multitenant retail sales on a year-over-year basis—the highest in nearly 10 years.
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Dining, groceries and discount stores were the most anticipated store openings, while accessory shops such as GameStop and Francesca’s continued to face closings.
JLL President of Retail Advisory Services Naveen Jaggi said that the divergence in retail performance and broader retail market trends is not accidental. With the rise in inflation having a notable effect, consumers are prioritizing practicality and necessity in their everyday shopping experience.
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