Regency Centers Corp. has acquired 258,000 square feet of prime Silicon Valley retail located in the iconic mixed-use project known as The Pruneyard. Originally built in the 1960s, The Pruneyard quickly became a Silicon Valley landmark, evolving over the years and recently undergoing a substantial renovation.
Anchored by Trader Joe’s, it is located at the highly-trafficked intersection of Campbell Avenue and Bascom Avenue, adjacent to State Route 17. The Pruneyard sits in close proximity to the West Valley’s most affluent neighborhoods, drawing traffic from a significant portion of the area.
In addition to the retail portion, The Pruneyard also features a mix of unowned uses that include three office towers totaling 360,000 square feet and a 171-key hotel, which were not part of the transaction.
“The Pruneyard is an iconic destination, and an opportunity to be a part of something like this doesn’t come along very often,” said Craig Ramey, Regency Centers’ Managing Director of the Pacific Northwest, Colorado, and Northern California. “We’re aware of the rich history of this center. This, coupled with a strong merchandising mix and terrific amenities, aligns very closely with the types of properties already in our portfolio. We want to ensure that The Pruneyard continues to build on its recognized position as a premier retail destination in Silicon Valley.”
Regency currently owns and operates 28 properties within the Bay Area, including The Pruneyard. The Regency team is led by local industry veterans who are active members of their community, committed to the betterment of properties that serve the community.
Regency acquired the center directly from a joint venture between Ellis Partners and investment funds managed by an affiliate of Fortress Investment Group LLC. Ellis Partners is retaining a minority interest in the new ownership and will continue to provide operating services, leveraging its deep local knowledge, expertise, and affiliations.
“We are pleased to collaborate with the Regency team as the vision for The Pruneyard is approaching full realization,” said Jim Ellis, Managing Principal, for Ellis Partners. “We are grateful to the Fortress team for their partnership over the last five years. Their support and commitment to the entire mixed-use project has been a linchpin to our ability to revitalize The Pruneyard for the Campbell community,” said Melinda Ellis Evers, Managing Principal for Ellis Partners.
“Regency brings a strong track record of experience and performance, and has a deep appreciation for the special nature and history of this property. We are confident in the continued successful operation of this center under Regency and Ellis Partners,” said Noah Shore, Managing Director and Head of Retail for Fortress.
The HFF investment sales team, led by Bryan Ley and Eric Kathrein, represented the seller in the transaction. The purchase price for the retail portion of The Pruneyard was $212.5 million.