STORY HIGHLIGHTS
- Capitol Square in Fremont sold to a private investor.
- The $100 million project completed in spring 2021.
- Capitol Square is fully leased with 11 storefronts.
A major Fremont retail project sold this month, leaving the hands of the developers that created it three years ago.
Capitol Square, in Fremont’s downtown, is the 21,100-square-foot retail component of a mixed-use project developed by TMG Partners, Sares Regis and Summerhill Homes. Above the retail space sits 157 units of housing.
The entire $100 million mixed-use project finished in the spring of 2021.
Sares Regis Group of Northern California and TMG Partners sold Capitol Square to a local, private investor. Specifics on the buyer and price were not disclosed.
Cushman & Wakefield executives Don LeBuhn, Rick Ryan and Dan Wald, served as the brokers for the transaction.
“The strong competition to purchase Capitol Square at a high price per square foot is evidence that high-quality improvement in strong demographic areas – often with scarce options to purchase – continues to be attractive to investors,” LeBuhn said in prepared remarks.
Capitol Square’s retail component was on the market for one month to take offers, according to Sares Regis.
LeBuhn said the property drew offers from both individuals with private capital and institutional groups with specific funds for investing in this type of retail.
The site, at 3658 and 3768 Capitol Ave, is fully leased and the 11 storefronts include small businesses with staggered openings, as they exit the construction phase. LeBuhn said he expects all the stores to be open by the end of 2025’s first quarter.
Capitol Square is just one piece in the revamp of Fremont’s Capitol Avenue area.
Fremont’s Economic Development Director Donovan Lazaro said the city is building a new downtown from scratch.
Fremont’s Downtown Community Plan, adopted in 2012 with TMG Partners as the master developer, laid out guidelines to transform more than 100 acres of the city’s downtown into new housing, retail and office space.
Fremont is only about five years into a 20-year development horizon for Fremont’s downtown, Lazaro said.
“Capitol Square has been a catalyst for adjacent developments in the heart of Fremont,” TMG Partners Co-CEO Matt Field said in prepared remarks. “Downtown Fremont has been experiencing a transformation over the last five years, and this fully leased retail project offers strong returns to a new investor in the community.”
