LOS ANGELES, Dec. 6, 2016 /PRNewswire/ -- A joint venture between Western Avenue Capital and Northstar Enterprise Opportunity Fund I, LP ("NCP Enterprise") announced that it has acquired Foothill Square Shopping Center, a 120,000 square foot anchored retail center in Oakland, CA. The well-established property was originally developed in 1962 and underwent a major renovation between 2013 and 2016 whereby the property was significantly remodeled and expanded. Given the transitional nature of the asset, the joint venture seeks to stabilize the asset for the long term and benefit from the attractive going in yield and basis. The joint venture is the first investment of the recently launched NCP Enterprise Fund I.
Foothill Square Shopping Center is strategically positioned adjacent to the MacArthur Freeway (I-580) just off the Foothill Blvd exit and is the only major grocery-anchored retail center with direct access along Interstate 580 for eight miles north and four miles south. The property's highly visible and easily accessible location has supported the neighboring community for more than 50 years. "The acquisition presents a unique opportunity to stabilize and reposition a cash flowing asset in an infill community in the Bay Area," stated David Kasirer, partner at Western Avenue Capital. The property is 95 percent leased to national and regional tenants including FoodsCo (shadow), Ross Dress for Less, Wells Fargo, Davita, Rainbow and a Head Start school, in addition to multiple leases negotiated during the acquisition process.
"Our company has a track record of acquiring similar properties across the West Coast and we will continue to support the attractive tenant mix and community in Foothill Square," said Jonathan Kasirer, partner at Western Avenue Capital. "We intend to continue to work with professional and reliable capital partners like Northstar," stated Joshua Kaplan, partner at Western Avenue Capital.
Peter Auerbach, NCP Enterprise Co-Founder and CIO stated: "This opportunity delivered the optimal value-add investment opportunity – the ability to significantly increase income through a repositioning of the property in an infill, growth market. We are pleased with the immediate cash flow in an area we believe is poised for growth. We are pleased to work with Western Avenue Capital in our first investment in the Northstar Enterprise Opportunity Fund I."
Brian Watson, Founder & CEO of Northstar Commercial Partners and the Enterprise Fund stated: "One of the tenets of our business is to do well by doing good, as we must in local communities to create jobs and opportunities. We believe that this area of Oakland is growing, and we are excited to be involved in helping create new opportunity through our efforts on this asset. We are pleased with our partners at Western Avenue and look forward to using our best efforts to provide partners with reasonable risk adjusted returns."
About Western Avenue Capital
Western Avenue Capital is a real estate investment, development and management company headquartered in Los Angeles, California. Over the past 40 years, its predecessor companies have established a diversified portfolio of retail, healthcare, multifamily and industrial properties across the United States. Western Avenue Capital targets undermanaged or neglected properties in infill, growth markets with a focus on cash-flowing investments. Since 2009, Western Avenue Capital has acquired a portfolio that values approximately $170 million. Learn more at www.westernavecap.com.
About Northstar Enterprise Opportunity Fund I:
Northstar Enterprise Opportunity Fund I ("the Fund") is an affiliate of Northstar Commercial Partners. The Fund partners with local real estate operating partners throughout the US with the intention of acquiring distressed and value-add office, medical office, multi-family and retail properties. It plans to acquire assets in promising/growing US markets, as well as invest in value-add opportunities in more stabilized cities. The Fund is based in Denver, Colorado and New York City, New York.
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SOURCE Northstar Commercial Partners