Orrick has advised Chicago-based real estate firm Heitman Real Estate Securities in its purchase of the Pacific Commons Shopping Center to Catellus Development Corporation.
The acquisition of the 865,000 square foot Pacific Commons retail mall in Fremont, California also involved a commercial mortgage-backed securities loan assumption from Catellus, the seller and developer, who had originally financed portions of the development through a bond issue. Catellus began building the center more than a decade ago and will retain a 320,000 square foot development site that is under construction.
The sale of the Pacific Commons retail center garnered high interest from a variety of potential buyers including institutional investors, pension funds, individuals and real estate investment trusts looking for Class A properties in core locations. The center has more than 50 tenants including anchors such as Costco, Kohl’s, Lowe’s, TJ Maxx, Nordstrom Rack and DSW.
The financial terms of the largest retail property sale in the Bay Area this year have not been disclosed.
The Orrick team was led by real estate partner Michael Liever and included real estate associates Jacobus Machalow and Ari Grey.