We purchased Gateway Plaza in Vallejo (Solano County), California in February 1997. The 337,000 sq. ft. community shopping center was developed in 1991 as part of a 1,165 acre master planned community, originally slated for 1,500 homes, office parks and community-serving retail. The property suffered as Vallejo was hit hard during the recession of the early 1990's. Homebase, the largest tenant at 102,000 sq. ft., vacated and exacerbated the property's distress. The lender foreclosed on the shopping center once the owner could no longer service its debt. We acquired Gateway Plaza with 36% vacancy.
Once the leasing market stabilized over a period of three years, we focused on sub-dividing the former Homebase building into four anchor spaces, which we leased to Old Navy, Michael's, Linens 'n Things, Cost Plus World Market and added GLA in place of the building's former garden center to accommodate an additional tenant. Additionally we bought out the dark supermarket, a former Savemart, and replaced it with two junior anchors. Century Theaters replaced a former Service Merchandise and multiple restaurant and shop pads were added to accommodate increased tenant demand. Gateway Plaza was 100% leased at disposition in October 2003.