SAN JOSE — A high-profile San Jose retail and restaurant center has been bought by a real estate firm in a deal that shows big investors still hunger for physical stores in the wake of the coronavirus.
The Plant, located near downtown San Jose at the corner of Curtner Avenue and Monterey Road, has been bought by The Necessity Retail REIT. The real estate firm bought the South Bay retail complex as part of a $1.3 billion purchase of a package of commercial properties.
Necessity Retail paid $175 million for The Plant, the real estate firm said Tuesday.
“The Plant is a highly desirable asset in the portfolio of open-air shopping centers we have acquired in 2022,” Michael Weil, chief executive officer of Necessity Retail, said in a prepared release.
Located at 1 Curtner Ave. in San Jose, The Plant totals 509,000 square feet.
The Plant was built through the redevelopment of a long-time General Electric factory at that site. Some of the old GE structures were retained in the development project.
Target, Home Depot, Best Buy, Famous Dave’s, Panera Bread, Applebee’s Grill + Bar, Ross Dress for Less and Ulta Beauty are among the merchants that lease space in The Plant.
Necessity Retail is gambling that it can be successful in owning retail and restaurant complexes whose anchors include big-box retailers, despite the economic uncertainties unleashed by the coronavirus, along with the shift to online shopping.
“Our properties are located in strong suburban communities and are the brick and mortar locations that represent the last mile in retail, the places consumers continue to visit every day to receive goods and services,” Necessity Retail states on its website. “We are witnessing a retail renaissance.”