Newmark announces the sale of a regional mall anchored in a grocery store in Folsom, California
September 28, 2021 8:00 a.m.
Newmark Knight Frank (âNewmarkâ) announces that it has completed the sale of Folsom Gateway, a 242,582 square foot regional shopping center located at 2425-2445 Iron Point Road in Folsom, California. Located in the city’s main shopping center, the property is home to a diverse mix of tenants, including Sam’s Club, REI, Staples, and Best Buy.
Newmark’s vice president, head of retail capital markets in Northern California, Nicholas Bicardo, facilitated the transaction. The seller was an affiliate of Braddock and Logan, and the buyer was Pappas Investments, based in Sacramento.
âFolsom Gateway is a strong asset rooted in the regional grocery store with a very attractive weighted average lease term that is well positioned to take advantage of future growth in the surrounding region,â said Bicardo. “We have seen considerable interest from institutional and private capital in this asset.”
Folsom Gateway is the first regional center anchored in the grocery store in the commercial area. Anchored by a 131,652 square foot Sam’s Club and gas station on a long term ground lease, the property benefits from being positioned at the “Folsom Gate” attracting customers within a 20 mile radius and benefiting from the visibility of Highway 50. The mix of off-plot tenants is made up of retailers of basic necessities, including food, financial, dental and fuel suppliers.
Folsom Gateway is adjacent to Folsom Ranch, one of the largest planned communities in Northern California. This development is expected to transform the neighborhood by attracting thousands of employees, providing over 11,000 new residential units.
The property is strategically located in the heart of the Folsom Retail Hub, a Sacramento submarket containing over four million square feet of space in addition to being one of the wealthiest retail areas in the region. The population of 114,756 within a 5-mile radius has grown 15 percent over the past 10 years and is expected to grow an additional 6 percent over the next five years, according to Newmark Research. The property also benefits from its proximity to a dense daytime population of over 57,000 employees within a five mile radius.
Newmark Group, Inc. (Nasdaq: NMRK), along with its subsidiaries (âNewmarkâ), is a global leader in commercial real estate, seamlessly fueling every phase of the property lifecycle. Our full range of services and products are uniquely tailored to each client, from owners to occupants, investors to founders, growing startups to leading companies. In 2020, Newmark generated revenues of over $ 1.9 billion. Newmark, together with its London partner Knight Frank and independent licensees, operates worldwide from approximately 490 offices with 19,300 professionals. To learn more, visit nmrk.com or follow @newmark.
Discussion of forward-looking statements regarding Newmark
Statements contained in this document regarding Newmark that are not historical facts are “forward-looking statements” that involve risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements. These include statements regarding the effects of the COVID-19 pandemic on the business, results, financial condition, liquidity and prospects of the Company, which may constitute forward-looking statements and are subject to the risk that the actual impact may differ, perhaps materially, from what is currently expected. Except as required by law, Newmark assumes no obligation to update any forward-looking statements. For a discussion of additional risks and uncertainties, which could cause actual results to differ from those contained in forward-looking statements, see Newmark’s Securities and Exchange Commission documents, including, but not limited to, the risk factors and the special note on Forward-looking information set out in these documents and any updates to these risk factors and the special note on forward-looking information contained in subsequent reports on Form 10-K, Form 10- Q or Form 8-K.