Napa’s HomeGoods and Marshalls property, a key component of the Soscol Avenue Napa Crossing South commercial center, has a new owner.
The property sold on July 2 for $20.35 million, according to the county recorder.
Napa Crossing South II of Chico sold the property, located on the 300 block of Soscol Avenue, to Agree Limited Partnership of Bloomfield Hills, Michigan.
Two other parcels at the development — home to Michaels, Xfinity, Massage Envy, Mod Pizza, Chipotle, Habit Burger and other tenants — were not sold as part of this deal.
The Napa Crossing South center had been involved in a foreclosure in 2019. At that time, a lender filed foreclosure proceedings against Napa Crossing South II citing $37.3 million in unpaid debt.
That foreclosure was later cancelled.
Kent Hallen, the CEO of Napa Crossing South II and president at Pacific Properties Group, could not be immediately reached for a comment.
Joe Fischer, a local commercial Realtor with Strong & Hayden, praised Hallen’s handling of his financial situation.
“This was a smart move by Kent Hallen,” said Fischer, who was not involved in the sale. The sale allows Hallen to re-structure his debt on the development, he said.
“My guess is all sale proceeds went to reducing his overall debt. That leaves less debt on the two remaining parcels,” one with Michaels, Comcast, Massage Envy tenants, and the Soscol frontage parcel with Chipotle, Habit Burger, Mod Pizza, Sprint and Golden One credit union as tenants, he said.
“The remaining portfolio are very nice ‘hold’ properties, or if Kent is ultimately interested in selling them, I believe they would both be great investments for someone looking for good income properties in the emerging new neighborhood center of Napa,” he said.
According to Fischer, the South Napa Marketplace and the surrounding retail, now eclipses Bel Aire Plaza in annual customer visits.
In particular, “The parcel along Soscol is a jewel, and would command a premium in any sale,” he said.
The $20 million sale price for the one parcel is “a fair price,” said Fischer.
“As ‘bigger-box discount retailers,’ they normally appeal to a very specific type of buyer who is comfortable with how those retailers operate.” The underlying risk of what to do with a very large space if one of the tenants decides to exit the market is “something I don’t really see happening.”
For customers, the transaction really means nothing, said Fischer. “The sale just changes where the Marshalls Homegoods rent check goes.”
Napa Crossing South, which was developed by Pacific Properties of Chico, opened in 2014. A sister property, Napa Crossing North, located on Trancas Street at California Boulevard, opened in 2012.
Agree Realty Corporation is a publicly traded real estate investment trust primarily engaged in the acquisition and development of properties leased to industry-leading retail tenants, said its website.
A representative from Agree could not be immediately reached to comment on the purchase.
As of March 31, the company owned and operated a portfolio of 868 properties, located in 46 states and containing approximately 16.3 million square feet of gross leasable space, said its website. Projects in California include cities such as Visalia, Roseville, Sunnyvale and Whittier.
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You can reach reporter Jennifer Huffman at 256-2218 or firstname.lastname@example.org
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