Big investors buy several San Jose Lucky, Food Maxx sites
Chicago-based buyers grab supermarket properties for $130 million in Santa Clara County
SAN JOSE >> A big investment group from the Midwest that has been purchasing properties from retailers around the United States has grabbed a halfdozen San Jose properties occupied by grocery stores owned by Save Mart Supermarkets.
Chicago-based Oak Street Real Estate Capital has bought six sites in San Jose where a Lucky Store supermarket or a FoodMaxx warehouse store operates, public property documents filed on Nov. 23 show.
The deals mean that buyer Oak Street Real Estate Capital now owns retail sites occupied by a sturdy tenant, while the sellers, which are controlled by Save Mart, were able to raise a hefty chunk of cash.
The buyer, acting through an affiliate, paid $131.4 million for the supermarket properties, according to records on file in Santa Clara County.
The private equity investment firm has a strategy of buying choice real estate, often from retailers, and then leasing back the properties to the merchants.
Pennsylvania State Employees’ Retirement System, Illinois Teachers’ Retirement System, and Chicago Public School Teachers’ Pension & Retirement Fund have all invested in one or more funds organized by Oak Street Capital, according to the pension funds.
Oak Street Real Estate Capital bought these sites on Nov. 23, county documents show:
• Lucky Store site, 129 Bernal Road in San Jose, bought for $27.9 million.
• Lucky Store property, 3270 S. White Road in San Jose, bought for $26.7 million.
• Lucky Store site, 551 E. Capitol Expressway in San Jose, bought for $22.3 million.
• FoodMaxx site, 5506 Monterey Road, San Jose, $20 million price.
• Lucky Store site, 2027 Camden Ave., San Jose, $19.5 million price.
• FoodMaxx site, 3002 Story Road, bought for $15 million.
“Oak Street manages both commingled funds and separate accounts on behalf of institutional and high net worth investors, including public and corporate pension plans, insurance companies, and family trusts,” the private equity firm states on its website.