Identify and purchase under valued real estate at below replacement cost.
Transform and manage real estate into income producing assets for appreciation.
Achieve the highest return for investors & both short and long term.
WHAT SETS US APART FROM OTHER REAL ESTATE INVESTMENT OPPORTUNITIES
Emphasis on both short and long term profits.
Primary investment in mixed-use multi-family and senior housing.
Use of options to entitle large parcels of land.
San Francisco Business Times
Retailers find opportunity in Bay Area market
For retailers pining to enter the Bay Area market, the current economic downturn has been a golden opportunity. Grocers like Foods Co., Henry’s Markets, Sprouts and Fresh & Easy are now working on opening new stores. Wal-Mart is making the rounds for sites to house its new smaller-format grocery format. The recession did slow things down for Fresh & Easy, which had announced plans for about three dozen stores in the Bay Area by 2009. The rollout will start with 10 stores next year. Still, retail investment has moved along during what some retail experts deem as the worst of times. “Because our format is a warehouse-style discount style grocery store, the downturn in the economy in many instances has worked in our favor,” said Mark Salma, director of real estate for Ralphs Grocery Co., parent company of Foods Co. “The pace of our growth is pretty consistent all the time no matter what the economy may or may not be.” On the development side, Sid Afshar of Sunfield Development has three mixed-use projects
with big retail components in Oakland in the works. Sunfield has been reaching out to various chain retailers that have skipped over Oakland in the past. “Because Oakland is so underserved, as soon as there’s a good center, everyone wants to move in,” Afshar said. “In Oakland, residents and the redevelopment agency want chains.” One project involves a retail and office center that will be anchored by a drugstore at the corner of Foothill and Seminary in East Oakland. So far, Walgreen’s has signed a letter of intent for 14,500 square feet. That site also has space for a small-format grocery store — which is the size many growing grocers are going after. “You can get into spaces that conventionally sized grocers couldn’t squeeze into,” said John Cumbelich, a retail broker with John Cumbelich & Associates in Walnut Creek. Big box retailers like Wal-Mart, Target and Lowe’s Home Improvement are still pursuing Bay Area locations, but retailers that can fit into mid-size spaces have been the most active in signing leases, he said. “In most every subset of retail, we’re seeing a core group of folks who are active,” Cumbelich said. “Discount retailers were particularly active during the downturn in the economy.” Foods Co. has 21 locations in Northern California and has plans to add two more in East Oakland — its first foray into that city. A third Oakland location, possibly in West Oakland, is also in the works. Fresh & Easy has plans to open 10 stores in the Bay Area in 2011. The chain, a unit of U.K.-based Tesco, opened 168 stores in Southern California, Arizona and Nevada, where it says it has perfected its neighborhood-serving format. “We’ve been expanding very rapidly,” said Brendan Wonnacott, a Fresh & Easy spokesman. “We do have a number of sites in the pipeline. It’s just a normal part of our national expansion. In the next two years, we’ll be doubling the number of stores in the United States.” Henry’s, a San Diego-based chain that offers natural and organic foods at reasonable prices, plans to open its first Bay Area store in Walnut Creek and is looking for more sites. Another grocery retailer, Sprouts Farmers Markets, recently announced plans to open a store in Dublin and has a location up and running in Sunnyvale. “This market’s been an opportunity for quite a few tenants, especially speciality grocers coming into the market,” said Deborah Perry, a retail broker with Grubb & Ellis in Walnut Creek. Lots of large spaces opened up after retailers like Mervyn’s and Circuit City declared bankruptcy and shuttered stores. That coupled with a drop in lease rates has prompted numerous deals, Perry said. Another grocer, Seafood City, which caters to an Asian audience, bought a site in Concord that had once been a Circuit City. Foods Co.’s strategy is to own all of its real estate while others like Fresh & Easy and Wal-Mart both lease and own properties. “Finding locations is very time-consuming,” Salma said. “We’ve had to turn over a lot of rocks, visit lots of communities, visit lots of cities. It’s difficult finding opportunities that are economically feasible with a need for grocery retail, and cities that are interested in cooperating with us.”