College Terrace Centre, home to a new grocery store that opened Tuesday, Real Produce International Market, was sold to an unnamed "global investment company," according to a Wednesday press release from property owners Blox Ventures LLC and Angelo Gordon.
While the price tag of the sale was not disclosed, a report by the Silicon Valley Business Journal estimated that the property was purchased at more than $100 million.
Investment firms Blox Ventures and Angelo Gordon purchased the property for $78.5 million in June 2018, a year after construction was completed. Its previous owner was Greystone Property Development.
"The property was ripe for repositioning through re-tenanting with a solid anchor and bringing back a grocer — something the community both needed and wanted," Jason Oberman, CEO of Blox Ventures, said of the purchase at the time in an email. "When we identified the property, we recognized the assets of corner sitting, transportation access and proximity to both educational facilities and Silicon Valley businesses. Cosmetically, it had been neglected so we wanted to make a positive impact for the neighborhood aesthetic, as well."
With a new grocer now at the center, Oberman said his firm "felt it was time to dispose of the property in order to focus on (its) next project."
Anchored by the First Republic Bank's regional office, the mixed-use property on 2100 El Camino is situated next to Stanford University and about a half-mile away from the California Avenue Caltrain station.
Despite its prime location, the 57,900 square-foot development has drawn scrutiny from local residents and city leaders for its inability to retain a viable grocery store — a requirement the City Council made in 2009 in exchange for favorable zoning changes.
When Blox Ventures purchased the property in 2018, it quickly faced a dilemma: fill a vacancy with a new grocery store or be hit with a $2,240 daily fine. Despite the challenges, Oberman said his firm was confident in the investment, given the tech industry and Stanford University's presence in the area.
"We never expect a project to be seamless, so we stayed focused on the positive outcome," Oberman said.
The first two grocers, Khoury's Market and College Terrace Market, have opened and closed since 2017, making Real Produce International Market the center's third. Owners of the previous markets cited issues with visibility for their stores, among other reasons, for leaving the property.
The center also includes eight below-market-rate housing units and a mix of local businesses.
Blox Ventures currently lists 530 Lytton Ave. in Palo Alto and 2100 Sand Hill Road in Menlo Park as its "current projects" on its website.