The recent purchase of Brentwood Street for over $70 million has sent shockwaves through the real estate market in the East Bay area, signaling a decline in property values for shopping centers and restaurants in the Bay Area.
The Streets of Brentwood, a large retail center, was acquired for approximately $75.9 million by two real estate companies, CenterCal Properties and Heitman, through their affiliates. Located at 2455 Sand Creek Road in Brentwood, the shopping complex spans 359,000 square feet and boasts major retailers such as AMC Brentwood 14, Barnes & Noble, Ulta Beauty, BJ’s Restaurant and Brewhouse, DSW Shoe Store, Black Angus Steakhouse, and Sprouts Farmers Market.
The new owners have ambitious plans to revamp and enhance the offerings at The Streets of Brentwood, aiming to transform it into a premier lifestyle destination and strengthen its position as a community hub. They envision adding new dining and shopping options, as well as creating spaces for events and introducing popular lifestyle brands and restaurants.
Despite the hefty price tag, the new owners paid less than what the property was purchased for by the previous seller in 2018. Fairbourne Properties, based in Chicago, had acquired a portion of The Streets of Brentwood for around $78.8 million and an additional $7 million for a vacant lot nearby, totaling $85.8 million. Over the course of six years, Fairbourne Properties sold two vacant lots on the site to other businesses, as per county records.
The current owners paid 3.7% less for The Streets of Brentwood compared to what Fairbourne had paid in 2018. Furthermore, the current market value of the mall is 14.8% lower than its assessed value of $89.1 million in January 2024, according to the Contra Costa County Assessor’s Office.
Despite these figures, the new owners remain optimistic about the future of The Streets of Brentwood. CEO of CenterCal Properties, Jean Paul Vardy, expressed their commitment to creating a vibrant community space where people can gather, relax, and enjoy various experiences. They believe that open-air lifestyle centers like this one have shown strong performance post-COVID-19 and will continue to benefit from a lack of new supply and stable demand from retailers.
The new owners are eager to collaborate with the local community and tenants to shape the future of the property. They hope to work together with retail partners and the Brentwood community to further develop this dynamic downtown center.
In conclusion, the acquisition of The Streets of Brentwood for over $70 million marks a significant shift in the real estate landscape of the East Bay area. With ambitious plans for revitalization and a focus on community engagement, the new owners are poised to transform this shopping complex into a thriving lifestyle destination.