Vornado To Sell San Jose Power Center for $203M

SAN JOSE, CA—Vornado Realty Trust, based in Paramus, N.J., has agreed to sell the Plant shopping center to a division of Cole Real Estate Investments for more than $203 million.

The 643,000-sq.-ft. retail property is at the northwest corner of Monterey Road and Curtner Avenue, with anchors that include Best Buy, Target and Toys ‘R’ Us. Since some of the retailers own their own space, Cole Credit Property Trust IV is buying only 510,000 sq. ft.

According to a Vornado statement, the sale will result in net proceeds of approximately $93 million, after repaying existing debt and closing costs, and a financial statement gain of approximately $33 million. The sale is expected to be completed by the second quarter of 2013.

In an SEC filing, the Cole trust said it paid a $10 million deposit. The purchase of the property is expected to be funded with a combination of proceeds from the company’s initial public offering and borrowings from the company’s revolving bank credit facility or a mortgage loan to be secured by the property, according to the Cole trust.

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