JLL arranges JV equity for the $95M acquisition of San Jose shopping center

ORANGE COUNTY, Calif., Sept. 10, 2024 – JLL Capital Markets announced today that it has arranged joint venture equity for $95 million acquisition of The Plant, a 367,896-square-foot regional power center in San Jose, California.

JLL worked on behalf of the operator, Milan Capital Management, to arrange the equity investment through Arc Capital Partners, a middle-market institutional investor. Proceeds were used to acquire The Plant in a $95 million transaction.

Spanning an impressive 35.52 acres, The Plant was completed in 2008. With a current occupancy rate of 64.1%, the center boasts anchor tenants such as Best Buy, Ross, PetSmart, Ulta and Off Broadway along with Starbucks, IHop, McDonald’s, Panda Express, El Pollo Loco, Chase Bank and Five Guys. Additionally, The Plant benefits from the presence of two shadow anchors, Target and Home Depot, which attract substantial foot traffic to the center.

Located at 1 Curtner Ave., The Plant enjoys a highly convenient position at the intersection of Cutner Ave. and Monterrey Rd., which see 38,700 and 31,400 vehicles per day respectively. With its strategic location near multiple Fortune 500 headquarters and in close proximity to the San Jose International Airport, this shopping center caters to both local residents and visitors from afar.

San Jose, commonly referred to as the "Capital of Silicon Valley," is a prominent hub for innovation and technology. With an impressive annual household income averaging $162,000 and a significant portion of the population holding a Bachelor's degree or higher, San Jose boasts an affluent and educated market. The city's strategic location, highly skilled workforce and business-friendly environment have propelled its growth, making it one of the largest cities in Northern California.

“We are thrilled to have advised Milan Capital on the acquisition of The Plant. Our process generated several alternatives, but Arc Capital Partners emerged as clearly the right partner. They best understood the opportunity despite challenging capital markets, and they moved nimbly through detailed due diligence and a complex closing,” Tranchina said.

“The Plant is a rare value-add opportunity in a prime interior Bay Area market. We are excited to see Milan Capital execute their business plan and bring new and dynamic tenants to the shopping center,” added Kathrein.

JLL Capital Market’s Investment and Sales Advisory team was led by Managing Directors Geoff Tranchina, Gleb Lvovich and Eric Katherin, Senior Director Daniel Tyner and Vice President Conor Quinn.

JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment sales and advisory, debt advisory, equity advisory or a recapitalization. The firm has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.

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Milan Capital Management is a real estate investment and management company that focuses on value-add investments in southern California, with over 4 million square feet under management, predominantly in the daily needs retail sector. By focusing on the fundamentals of real estate investing and taking a hands-on approach, Milan has consistently delivered outsized risk adjusted returns for its investors through multiple cycles since 1999. Milan specializes in difficult situations where value can be added through proactive management, aggressive leasing tactics, and accretive capital improvements. For further information, please visit www.milancap.com.

Arc Capital Partners is an institutional real estate owner and investment manager dedicated to redefining real estate in mixed-use environments. Founded in 2013 by principals with over $10 billion of transaction experience, Arc targets middle-market investments in high barrier-to-entry Sunbelt markets with strong demographic demand fundamentals. Arc is a diverse-owned firm that pursues preferred equity, joint venture, and direct investments with both compelling value-added/opportunistic returns and downside protection. For further information, please visit www.arccapitalpartners.com.