While the new Medford Center ownership was checking its math and tallying up refurbishing costs, Bear Creek Plaza shopping center quietly went on the block a few months ago.
Bear Creek Ventures of Malibu, Calif., which acquired the shopping center on the southeast corner of Biddle Road and East McAndrews Road in 2007, is asking $25 million to $28 million — significantly more than the $22.175 million LBG Real Estate of Los Angeles paid Kimco Realty for Medford Center.
Medford Center boasts 335,000 square feet of leasable space versus 188,000 square feet at Bear Creek Plaza.
So why is Bear Creek Plaza fetching potentially 20 to 25 percent more than Medford Center ?
While Medford Center had infrastructure issues, suggesting it need a lot of physical updates, to go with leasing issues, Bear Creek is fully leased, including a batch of recent long-term renewals. The traffic counts are also the kind that cause retailers to drool.
The leases and location, in center of Medford’s commercial activity hub give the Bear Creek Ventures a lot of leverage.
“Highway 62 might have a higher traffic count, but a lot of that is pass through traffic,” said Tom Fischer of Coldwell Banker Commercial NW.
As a result, Bear Creek Plaza will likely more than double the $66 per square foot LBG Real Estate paid for Medford Center.
“The $66 per square foot,” Fischer said. “Was about right for what they have been getting, or not getting, in (lease) income. For someone to come in and buy at that price and then be able to fix it up and lease it at current market rates; that was a good buy.”