Crow Holdings Capital buys Petaluma Town Plaza with plans to relocate vacant space.
A major Dallas-based real estate investment firm on Monday bought the small Petaluma mall whose tenants include a family medicine clinic for St. Joseph Health.
CH FSR I Petaluma Town Plaza LP, an affiliate of Crow Holdings Capitalacquired two – the Petaluma Town Plaza building property at 901 and 905 E. Washington St. from local investors Conrow 2006 Trust, Sherre Strum 2008 Trust, Robert and Jennifer Conrow Living Trust.
At the time of sale, the 26,699 square meter retail space was 64% occupied. Other tenants include FedEx Office, Sherwin Williams, Posh Nails and SalonCentric.
“Petaluma Town Plaza presented a fantastic opportunity to acquire a strip center with attractive value-add opportunities in a growing market,” said Warren McClean, one of the JLL agents who represented the sellers, in the announcement Friday. “The transaction demonstrates the continued strength of investor interest in non-anchored retail assets with upside potential in strong suburban markets such as Petaluma.”
In the retail real estate industry, a strip center or mall, because the stores are arranged in a line. These properties tend not to have an anchor, which is a tenant that itself draws significant consumer traffic.
McClean said a plan for the Petaluma center under new ownership is to lease up the vacant “endcap” spaces at either end of one of the buildings. The FedEx Office left one of these to move to a space in the other building formerly occupied by the Pick n’ Go Market. A Sleep Number mattress store used to occupy the other vacant space.
Petaluma Town Plaza was built in 1991 on 0.83 acres. Eric Kathrein from JLL also represented the sellers.
Crow Holdings Capital came from the Trammell Crow Company, which started in 1948. It lists current assets under management of over $19 billion.
Jeff Quackenbush covers wine, construction and real estate. Reach him at jquackenbush@busjrnl.com or 707-521-4256.
