Cupertino retail center sold to mega insurer
CUPERTINO — A Cupertino retail center near the Apple tech hubs has been sold for more than $90 million to a New York City-based insurance titan.
The family foundation of a legendary Bay Area real estate firm sold Homestead Square shopping center to an affiliate controlled by MetLife Investment Management, according to documents filed on June 1 at the Santa Clara County Recorder’s Office.
Sobrato Family Foundation, one of the giving vehicles of Sobrato Philanthropies, which is part of the Sobrato Organization, sold the shopping center to the MetLife investment entity.
MetLife Investment Management, a unit of MetLife, paid $92.5 million for the retail, restaurant and supermarket center in an all-cash deal, the county public records show.
The MetLife unit, which provides investment management for institutional clients that hunger for an array of assets, including real estate, bought the shopping center, real estate records show.
Safeway, Ross Dress for Less, Michaels, Ulta Beauty and Rite Aid are among the merchants that are located in Homestead Square, Google Maps shows.
The deal is a reminder that despite wide-ranging economic uncertainties linked to the coronavirus pandemic, investors continue to seek well-located commercial real estate properties in Silicon Valley.
In the case of Homestead Square, the shopping center, which totals about 196,700 square feet, is relatively close to major Apple tech hubs, including the vast Apple Park campus and the Infinite Loop complex.
The center also is in a high-demographic region of Santa Clara County.
The median household income within one mile of the shopping complex is about $169,100. That’s about 20.5% above the median household income for all of Santa Clara County, which is roughly $140,300, as estimated by the U.S. Census Bureau.
It also appears that Homestead Square’s property value is on the rise.
In June 2022, the shopping center’s value was $79.5 million, according to the Santa Clara County Assessor’s Office. The purchase price is 16.4% higher than Homestead Square’s assessed value.
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