Hanley Investment Group Facilitates Sale of Pacific Town Center in Stockton, CA
Hanley Investment Group facilitated the sale of Pacific Town Center, a 143,217 SF shopping center in Stockton, CA, anchored by Smart & Final Extra! With a 58% vacancy, the property offers a prime repositioning opportunity for investors.
Strategic Retail Investment in Stockton’s High-Traffic Corridor
Hanley Investment Group Real Estate Advisors, a nationally recognized real estate brokerage and advisory firm specializing in retail property sales, successfully brokered the sale of Pacific Town Center, a 143,217-square-foot shopping center in Stockton, California. The transaction highlights a significant value-add investment opportunity in a prime retail corridor.
The property, anchored by a high-performing Smart & Final Extra!, was sold despite a 58% vacancy rate, showcasing the confidence investors have in the long-term potential of the site. The seller, a private investor based in Sacramento, was represented by Hanley Investment Group’s Vice Presidents Sean Cox and Alexander Moore, along with Executive Vice President Kevin Fryman. The buyer, Brixton Capital, a San Diego-based real estate investment firm, represented themselves.
High Demand for Prime Retail Investment Opportunities
According to Cox, the sale of Pacific Town Center attracted significant interest from investors nationwide.
“Attracting 18 offers from mid-market and private investors, we maximized pricing by securing a 1031 exchange buyer who recognized the property’s exceptional value-add investment potential,” said Cox. “At the time of the sale, the property was 58% vacant, creating a prime repositioning opportunity.”
Brixton Capital now has the opportunity to lease up a 49,835-square-foot former Toys ‘R’ Us, a 30,207-square-foot former T.J. Maxx, and 2,900 square feet of shop space, potentially revitalizing the shopping center and bringing new retailers to the Stockton community. The property’s separate legal parcels also provide multiple exit strategies for the new owner.
Prime Location in a High-Traffic Retail Corridor
Built in 2003 on 10.08 acres, Pacific Town Center is strategically located at 616-760 West Hammer Lane at the southeast corner of Hammer Lane and Pacific Avenue—one of Stockton’s busiest intersections, with over 58,000 cars per day.
According to Moore:
“Pacific Avenue is Stockton’s busiest north-south thoroughfare, providing access to Downtown Stockton, San Joaquin Delta College, University of the Pacific, Weberstown Mall, Sherwood Mall, Lincoln Center, and Pacific Town Center. Hammer Lane is home to major national retailers, including Costco, Walmart, Lowe’s, Home Depot, Food4Less, Walgreens, and multiple car dealerships such as Tesla, Ford, Chevrolet, Dodge Chrysler Jeep Ram, Buick, Kia, and Hyundai.”
Anchor Tenant Smart & Final Extra! Demonstrates Long-Term Commitment
Smart & Final Extra! has been a tenant at Pacific Town Center since 2009. In 2018, the retailer invested $1 million in property upgrades at their own expense, further solidifying their long-term commitment by extending their lease for an additional 10 years.
Smart & Final operates 254 stores under the Smart & Final Extra! and Smart & Final banners across California, Arizona, and Nevada. In May 2021, the company was acquired by Bodega Latina Corp. (owner of Fiesta Market and El Super) for $620 million. The chain was ranked #34 among the Top 50 Food and Grocery Retailers by Supermarket News in 2022.
Diverse Tenant Mix and Value-Add Leasing Potential
In addition to Smart & Final Extra!, the Pacific Town Center hosts a variety of established tenants, including Aaron’s, Concentra Health Services, Panda Express, Subway, Western Dental, and other local retailers and restaurants. However, with the former Toys ‘R’ Us and T.J. Maxx spaces available, the buyer has a unique opportunity to bring in new tenants and revitalize the shopping center’s leasing potential.
“With separate legal parcels, Brixton Capital has multiple exit strategies,” Fryman explained. “This transaction builds upon Hanley Investment Group’s track record of selling similar anchored shopping centers in the Central Valley, which now exceeds $583 million in retail sales in the region.”
Strong Market Activity for 1031 Exchange Buyers
The sale of Pacific Town Center was one of ten retail transactions Hanley Investment Group successfully closed in the week leading up to October 16. According to Fryman, this flurry of activity was driven by the extended deadline for 1031 exchanges in California, but the ongoing investor interest suggests that momentum will continue through year-end.
“The demand for retail investment opportunities remains strong, particularly for grocery-anchored shopping centers and value-add properties in strategic locations,” said Fryman. “We anticipate continued investor activity through the remainder of the year as buyers look to finalize transactions before the close of the fiscal year.”
Conclusion: A High-Potential Retail Investment in Stockton
The sale of Pacific Town Center represents one of the most significant retail repositioning opportunities in the Central Valley market. With a high-performing anchor tenant in Smart & Final Extra!, a prime location at a major intersection, and multiple vacant spaces ready for lease-up, the shopping center is poised for future success.
Hanley Investment Group’s ability to maximize pricing, generate multiple offers, and secure a competitive 1031 exchange buyer further highlights the firm’s expertise in retail investment sales.