In a significant real estate acquisition, Milan Capital Management has secured ownership of The Plant, a prominent retail and restaurant center in San Jose, which nests south of downtown. As reported by Silicon Valley, the shopping center changed hands for upwards of $90 million, the transaction reflecting the enduring appeal of Bay Area commercial properties. Official records from the Santa Clara County Recorder's Office confirmed the purchase of $95 million yesterday.
The shift of ownership comes just two years after Necessity Retail REIT procured The Plant for just shy of $175 million. What appears to be a strategic move by Milan Capital may also reveal investor confidence in reinvigorating and reimagining existing shopping spaces. According to a LinkedIn post by Joshua Bittick, the 65% occupied center holds the potential for significant growth and redevelopment in a densely populated and supply-constrained San Jose market.
The Plant boasts a substantial 650,500 square feet, as per real estate brochures, and houses key merchants, including Target, Home Depot, Best Buy, and others. Target owns its store site. The location's historical significance is noted, as The Plant was developed upon a long-standing General Electric factory, integrating parts of the original structures into the new development.
Silicon Valley cites Milan Capital's approach to property improvement—the firm plans to begin enhancing and stabilizing the center swiftly. "We focus our efforts on properties in need of leasing, renovation and stabilization measures," the company declares on its website. This measured intent aligns with Milan Capital's mission to nurture cash flow in the present and augment long-term property value through strategic location acquisitions.
Further details regarding the planned developments and timetable for those enhancements to The Plant have not yet been disclosed. However, Bittick's statement hints at upcoming announcements that would presumably introduce new facets to the shopping center, anticipating a warmly received transformation by the local community.
