Big San Jose retail center lands California buyer in $30 million-plus deal
SAN JOSE — A big retail center in San Jose with some high-profile anchors has landed a buyer from Southern California in a $30 million-plus deal.
Monterey Plaza, a shopping center in south San Jose, has been bought for $33 million, according to documents filed on Dec. 18 with the Santa Clara County Recorder’s Office.
Brixton Capital, a real estate investment firm, bought the shopping center, the county documents show. Brixton Monterey Owner is the affiliate that now owns the retail complex, according to the property records.
“Adding Monterey Plaza to our retail portfolio serves as a testament to our firm’s commitment to our value-add strategy aimed at enhancing shopping centers to better serve the surrounding community,” said Dan Sutherland, Brixton’s managing director of investments.
FoodMaxx, City Sports Club, Dollar Tree, Altitude Trampoline Park and McDonald’s are among the merchants in the Monterey Plaza complex. The center occupies 23 acres and is near the corner of Monterey Highway and Blossom Hill Road.
The retail complex totals 178,200 square feet and has addresses that range from 5502 through 5568 Monterey Highway in south San Jose.
Monterey Plaza was bought at a price that is 41% below the center’s $57 million assessed value, as of January 2023, according to county real estate documents.
Kimco Realty, a real estate investment firm, headed up the affiliate group that sold the shopping center. Nicolas Bicardo, a vice chairman with Newmark, a commercial real estate firm, arranged the property purchase.
Brixton Capital, as it moves into the early stages of its ownership of Monterey Plaza, aims to find a new tenant to replace the empty site of a Walmart store that shut its doors several years ago.
The new owner also intends to completely revamp the center, including new exterior aesthetics and landscaping.
“With the center’s current 71% occupancy rate, there are significant opportunities for our team to drive value through lease-up of vacant space and improve the shopping experience for local residents with new retail operators,” Brixton executive Sutherland said.